Credit Card Minimum Payment Calculator
See the true cost of paying only the minimum on your credit card. Calculate how many months (or years) it takes to become debt-free, the total interest you'll pay, and compare fixed payment strategies that save thousands.
| Payment Strategy | Monthly Payment | Months | Total Interest | Interest Saved |
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How Minimum Payments Work on Credit Cards
Credit card minimum payments are calculated as the greater of a fixed dollar amount (typically $25-$35) or a percentage of your outstanding balance (usually 1-3%). Based on CFPB Credit Card Accountability Responsibility and Disclosure (CARD) Act requirements, issuers must disclose how long it takes to pay off your balance making only minimum payments. This calculator reveals that true cost — often shocking consumers who discover a $5,000 balance takes 15+ years to pay off at minimum payments, costing more in interest than the original purchase.
Why Fixed Payments Save Thousands
The minimum payment trap works because as your balance decreases, your minimum payment shrinks too. This "negative amortization" effect means you're barely covering interest in later months. According to Federal Reserve consumer credit data, the average American carries $6,501 in credit card debt at 22.76% APR. Switching from minimum payments to a fixed $200/month payment on that balance saves over $8,000 in interest and pays off the debt 12+ years faster. Even small increases — $50 extra per month — can cut your payoff time in half.
Credit Card Minimum Payment Strategies
Financial advisors recommend several approaches to accelerate credit card payoff. The avalanche method targets the highest-APR card first while making minimums on others. The snowball method targets the smallest balance first for psychological momentum. Both outperform minimum-only payments dramatically. This calculator helps you model the impact of different fixed payment amounts so you can choose an affordable acceleration strategy. Last updated: 2026.
Understanding APR and Daily Interest
Your credit card APR is divided by 365 to get a daily periodic rate, then multiplied by your average daily balance. At 22.99% APR, you're charged approximately $3.15 per day on a $5,000 balance. When your minimum payment is $100 and $96 goes to interest, only $4 reduces your principal — illustrating why minimum payments are so costly over time. Use this calculator to see the exact breakdown for your specific situation.