Minimum Payment Calculator
See the true cost of making only minimum payments
Time to Pay Off (Min Payments)
50 years 0 months
Total Interest Paid
$55,654
Total Amount Paid
$60,713
Interest as % of Original Balance
696%
If paying $240/mo instead:
Payoff Time
4 yrs 4 mo
Interest Saved
$51,177
Visualization
Payment Strategy Comparison
Time to Payoff
Total Interest Paid
Results are estimates based on current balances and interest rates.
Results are estimates for informational purposes only and do not constitute financial advice. Actual payoff timelines may vary based on interest rate changes, fees, and payment consistency.
Minimum Payment Calculator Formula
The minimum payment is the greater of: a floor amount (typically $25-35) or a percentage of your balance (typically 1-3%). As your balance decreases, so does the minimum, extending payoff time dramatically.
How the Minimum Payment Calculator Works
- 1Enter your credit card balance
- 2Input the APR
- 3Specify the minimum payment percentage (usually 1-3%)
- 4Set the minimum floor amount ($25-35 typically)
- 5View the payoff timeline and total interest when paying only minimums
Minimum Payment Calculator Key Terms
- Minimum Payment
- The smallest amount you can pay without being considered delinquent, designed by issuers to maximize interest revenue.
- Payment Floor
- The minimum dollar amount required (usually $25-35) regardless of the percentage calculation.
- Percentage Minimum
- The minimum payment calculated as a percentage of your outstanding balance, typically 1-3%.
- Negative Amortization
- When minimum payment is less than interest charged, causing balance to grow—rare but possible with very low minimums.
Minimum Payment Calculator Tips
- •Minimum payments are designed to maximize lender profits, not help you
- •Always pay more than the minimum—even $50 extra makes a significant difference
- •Fix your payment amount rather than letting it decrease as balance drops
- •Minimum payment traps turn moderate debts into decade-long burdens
- •Use minimum payment calculations to motivate aggressive payoff
When to Use This Minimum Payment Calculator
- ✓Understanding why minimum payments are a trap
- ✓Calculating the true cost of only paying minimums
- ✓Motivating yourself to pay above the minimum
- ✓Comparing minimum payment versus fixed payment strategies
- ✓Financial education about credit card costs
Minimum Payment Calculator Examples
Minimum Payment Trap
Minimum payments stretch payoff to 18 years with nearly $9,000 in interest—more than the original balance.
Double the Minimum
Doubling minimum payments cuts payoff to 4 years and saves $6,500 in interest.
Fixed Payment Strategy
A fixed $150 payment (vs declining minimums) pays off debt in under 3 years.
Understanding Minimum Payment in Depth
The minimum payment is perhaps the most costly financial trap for consumers. Designed to appear manageable while maximizing interest revenue for issuers, minimum payments can turn modest debts into decade-long burdens costing multiples of the original balance.
The Minimum Payment Math
A $6,000 balance at 18% APR with a 2% minimum payment starts at $120/month. As the balance decreases, so does the minimum—$100, $80, $60, eventually reaching the floor. This sliding scale extends payoff to 30+ years and costs over $7,000 in interest.
Why Minimums Are So Low
Credit card companies profit from interest, not principal repayment. Low minimums keep you paying interest longer. Regulations now require disclosure of minimum payment payoff time, but many people still don't notice or understand these warnings.
The Fixed Payment Strategy
Instead of following the declining minimum, fix your payment at the initial amount or higher. That same $6,000 balance paid at a fixed $120/month is gone in 6 years with $2,000 in interest—saving $5,000 and 24 years versus declining minimums.
Breaking the Minimum Payment Cycle
Stop using the card while paying it off. Set up automatic payments above the minimum. Pay the minimum on low-rate cards while attacking high-rate cards aggressively. Consider balance transfers to 0% promotional cards, but pay them off before the promo ends.
Minimum Payment Calculator FAQs
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Marcus Chen
Financial Analysis SpecialistMarcus has over 12 years of experience in quantitative finance and personal financial planning. He specializes in loan analysis, investment modeling, and consumer debt strategies. His methodologies incorporate industry-standard financial mathematics used by major lending institutions.
Editorial Standards: All calculations use industry-standard financial formulas. Content is reviewed for mathematical accuracy and updated to reflect current market conditions. This tool provides estimates for informational purposes and does not constitute financial advice.