Credit card minimum payment calculator
Card issuers set the minimum payment by their own rule, usually a percent of the balance or a percent plus the month's interest, with a fixed floor. Enter your balance, the APR and your card's rule. You get the first payment, the time to clear the balance and the interest.
Runs in your browser: nothing you enter is sent anywhere.
How to use it
- Enter the balance and the APR from your statement.
- Choose how your card works out the minimum, and enter the percent and the floor.
- Read the first payment, the time to pay off and the interest.
How it works
- Interest each month = balance × APR ÷ 12.
- Minimum = the larger of the floor and the percent of the balance, with the month’s interest added in the second method.
- The payment is never more than the balance plus interest. The calculation repeats until the balance is zero.
Worked example
With 0% APR and a 10% minimum with a floor of 25 on a balance of 100, the payment is 25 every month (10% of the balance is lower), so it ends in 4 months with no interest. On 5,000 at 20% with a rule of 1% plus interest and a floor of 25, the first payment is 133.33 (50 + 83.33) and clearing the card takes about 18 years 10 months.
Tips
- Paying a fixed amount equal to the first minimum clears the balance much sooner.
- The percent and floor here are inputs, not rules of any country or bank.
- Fees and new purchases are not included.
Frequently asked questions
Why does paying the minimum take so long?
When the minimum is a percent of the balance, it shrinks as the balance falls, so the balance shrinks more and more slowly. Most of each early payment is interest.
Which minimum rule does my card use?
It is in your card agreement or statement; common forms are a percent of the balance, or a percent plus the month's interest, with a fixed floor. Both are offered here; the percent and floor are numbers you enter.
How is interest calculated?
Each month, interest = balance × APR ÷ 12 is added to the balance at the start of the month and the minimum is taken off. Issuers usually work daily, so a real statement can differ a little.
Is the last payment smaller?
Yes. When the balance plus interest is below the minimum, the final payment is only what is left.
How does this differ from the payoff calculator?
The credit card payoff calculator uses a fixed payment. Here the payment changes each month according to the minimum rule.