Minimum payment calculator

$
% APR
% of balance
$
Paying only the minimum takes
18 yr 9 mo

starting at $138 a month, falling as the balance does

First minimum$138
Interest$7,562
Repaid in all$12,562
$1,300$2,600$3,900$5,2000y5y9y14y19yholding $138 flatclear at 18 yr 9 mo$1,300$2,600$3,900$5,2000y9y19yholding $138 flatclear at 18 yr 9 mo

The balance paying only the minimum, against the dashed line that holds that same first payment flat. The tail is long because the payment shrinks with the balance it is a percentage of.

A $5,000 balance at 20.94% with a minimum of interest plus 1.0%, floored at $25, starts at $138 a month and takes 18 yr 9 mo to clear, costing $7,562 in interest - $12,562 repaid in all. The minimum shrinks with the balance, which is what stretches the tail.

How to use this, and the parts people get wrong
  • The minimum rule is on your statement: a small percentage of the balance with a cash floor.
  • The payment shrinks as the balance shrinks, which is exactly why minimum-only takes decades.
  • This page derives the minimum from the rule; the payoff calculator takes a payment you choose instead.

What letting it shrink costs

Holding that same first payment of $138 flat instead of letting it shrink clears the card in 4 yr 10 mo and saves $4,587. Nothing was added: the payment simply stopped falling.

18 yr 9 mopaying only the minimum
$7,562of interest along the way
151%of the balance, added

What a steady payment would do

The same card, paid a fixed amount every month instead of a shrinking one.

Held flatClear inInterestSaved
$1384 yr 10 mo$2,975$4,587
$2072 yr 8 mo$1,547$6,014
$2761 yr 10 mo$1,061$6,500
$4141 yr 2 mo$664$6,898
$55210 months$490$7,072

Questions people ask

How is a minimum payment calculated?
Most issuers charge the month's interest plus a small percentage of the balance, with a fixed floor underneath. On the seeded rule - interest plus 1.0%, or $25, whichever is more - a $5,000 balance asks for $138 in the first month. The percentage and the floor differ by issuer, so both are fields here.
What happens if I only pay the minimum?
It clears, eventually: 18 yr 9 mo on these figures, at a cost of $7,562 in interest. The reason it takes so long is that the minimum is a percentage of a falling balance, so the payment falls too and the last years are a thin tail of small payments.
Why does holding the payment flat help so much?
Because every pound the payment does not shrink by goes straight at the principal. Keeping the first minimum of $138 flat clears the card in 4 yr 10 mo instead of 18 yr 9 mo and saves $4,587, without ever paying more than the card asked for in month one.
Does paying the minimum hurt my credit?
Paying it on time is what the payment history looks at, so meeting the minimum is far better than missing it. The cost here is interest and time, not a missed payment - though a balance that stays high for years does keep utilisation high, which is a separate factor.
What should I pay instead?
Anything you can hold steady. The table above prices a few multiples of the first minimum, and the payoff calculator lets you start from a payment you choose rather than one the card sets.

Method and sources

  • Standard revolving-balance arithmeticMonthly accrual against a minimum recomputed from the balance
The calculation

A month-by-month simulation. Interest is added at the APR divided by twelve, the minimum is recomputed from the NEW balance as the greater of the percentage and the floor, and the remainder carries forward. The comparison line holds the first month's minimum flat for the whole run, so the only difference between the two curves is whether the payment is allowed to shrink.

What these figures do not cover
  • Minimum-payment rules differ by issuer and country; the percentage and the floor are yours to set.
  • Some issuers define the minimum as interest and fees plus a percentage of principal, which pays down slightly faster than the rule modelled here.
  • The APR is treated as fixed and nothing new is charged to the card.
  • Fees and daily compounding will move the total a little; the shape does not change.

Last updated August 2026.

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