← All calculators

Credit Card Minimum Payment

What "just pay the minimum" actually costs — and what a fixed payment does to the same balance.

The card

Minimum payment formula

Typical formula: 1% of the balance plus that month's interest, with a $25–$41 floor. It shrinks as you pay — that's why it never seems to end.

The alternative

Minimums only
Interest on minimums
Fixed payment
You save

Balance over time

Minimum payments Fixed payment

About this calculator

This credit card calculator contrasts paying only the minimum — which can stretch a balance over decades — with a fixed monthly payment that clears it in a fraction of the time. The interest difference is often shocking.

Frequently asked questions

Why are minimum payments so expensive?

Minimums are set just above the monthly interest, so almost nothing goes to principal. The balance barely moves while interest keeps piling up.

How is credit card interest calculated?

Interest is usually charged daily on your balance using your APR divided by 365, then summed for the billing cycle, so carried balances compound quickly.

How fast can I pay off my credit card?

Paying a fixed amount well above the minimum dramatically shortens the timeline. The calculator shows the exact months and interest saved.