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Loans and Debt

Credit Card Minimum Payment Calculator

See how long a credit card balance takes to clear and the total interest paid if you only make the minimum repayment each month.

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Your results

Time to clear balance17 yr 1 mo
Total interest paid$7,005.91
Total repaid$12,005.91

Minimum payments shrink as the balance falls, so this simulates a payment that is recalculated each month.

Calculation breakdown

Monthly minimum
max(balance × min%, floor)
Interest
balance × (annual rate ÷ 12)
New balance
balance + interest − payment

Worked example

A $5,000 balance at 21.99% p.a. with a 3% minimum and $25 floor takes roughly 12–13 years to clear if only the minimum is ever paid, costing several thousand dollars in interest.

Assumptions

  • Assumes no new spending is added to the card while paying it off.
  • Minimum is recalculated each month as a percentage of the falling balance, subject to the floor.
  • Ignores any promotional or introductory rates.

Sources

How this calculator works

This calculator models a credit card balance that is repaid using only the minimum payment each month, which is usually the higher of a fixed percentage of the balance or a set dollar floor. It shows the months to clear the debt and the total interest cost, so you can compare it with paying a fixed amount above the minimum.

Frequently asked questions

Why does the minimum payment take so long to clear a balance?

Because the minimum is usually a small percentage of the balance, most of each payment covers interest early on, so the principal barely reduces and the payoff drags out for years.

What counts as a typical minimum repayment?

Card providers vary, but 2–3% of the outstanding balance (or a small fixed dollar amount, whichever is greater) is common. Check your card's terms and enter the exact figure for accuracy.

Does paying a bit more than the minimum help much?

Yes. Even an extra $20–$50 a month can cut years off the payoff time and save a large amount of interest, because more of each payment reduces the principal.

Results are estimates only and are not financial, tax, legal or credit advice.

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