Credit Card Minimum Payment Calculator

The minimum is a requirement, not a payoff plan

A credit-card minimum payment is the least amount required to keep the account current for that billing cycle. It is not designed to produce the fastest or cheapest payoff. Statements show a minimum-payment warning because a falling payment can keep debt outstanding for many years.

This calculator models a common formula:

minimum payment = greater of (balance × minimum percentage) or dollar floor

Interest is applied before the payment each month. As the balance falls, a percentage-based minimum falls too. Once the percentage amount drops below the floor, the fixed floor applies until the final payment.

Worked example

Enter a $5,000 balance, 18% APR, a 2% minimum, a $25 floor, and a $200 fixed payment. The starting minimum is $100. Because the monthly rate is 1.5%, about $75 of first-month interest accrues before payment. Only roughly $25 reduces principal.

The next minimum is based on a slightly smaller balance, so it also falls. A fixed $200 payment does not shrink with the balance. More of it reaches principal, and the interest base falls more quickly.

The results compare payoff time, total interest, and savings. If the entered formula cannot cover interest, the minimum plan is marked as non-amortizing.

Use your statement’s real terms

Issuer formulas vary. Some use a percentage plus interest and fees; others apply different percentages, floors, or promotional terms. The statement’s three-year payoff box is also based on the current balance and assumes no new purchases.

Enter the closest percentage and floor available, then compare the tool’s first minimum with the statement. If they differ materially, rely on the issuer disclosure or use a fixed payment in the credit-card payoff calculator.

Make the comparison actionable

A fixed payment works only if it is affordable and paid consistently. Automating an amount above the minimum can prevent the payment from falling unnoticed. Stop adding purchases to the modeled balance, review whether a balance transfer lowers complete cost, and consider the debt consolidation calculator only after including fees and term length.

If you cannot make the minimum, contact the issuer promptly and consider a reputable nonprofit credit counselor. Avoid companies that guarantee debt elimination or instruct you to stop communicating with creditors.

Model limitations

The model uses monthly interest at APR ÷ 12. Actual cards commonly calculate interest from average daily balance and daily periodic rates. New transactions, fees, compounding conventions, grace periods, penalty APR, payment allocation, and changing rates can alter the result. The issuer’s payoff disclosure controls.