Credit Card Minimum Payment Calculator

Monthly interest = balance × (APR ÷ 12). For example, a $5,000 balance at 24% APR accrues about $100 in interest that month, before any payment is applied.

Issuers use different formulas, but the two most common are: a flat percentage of the balance (commonly 1-3%, with a dollar floor like $25-35), or 1% of the balance plus that month's interest charge (plus any fees). Check your card's cardholder agreement for its exact formula — this calculator lets you model either common method.

Because minimum payments are calculated as a percentage of a shrinking balance, the payment itself shrinks every month too — which can stretch payoff out for well over a decade and multiply the total interest paid, especially at high APRs. In some cases, a low percentage-of-balance minimum can be barely more than that month's interest, making payoff practically indefinite.

A higher percentage sends more above the interest charge toward actual principal every month, so the balance shrinks faster and less total interest accrues — even a modest bump from 1% to 2-3% often cuts years off a high-interest payoff.