Credit card minimum payment calculator
See what really happens when you pay only the minimum — decades of repayments and many times the original balance in interest.
Calculator debtLogic updated April 2026
This calculator shows what happens when you only pay the minimum on a credit card balance — and why that minimum payment trap can keep a balance alive for decades. Because the minimum is calculated as a percentage of the current balance, it shrinks as the balance shrinks, so each new minimum barely beats the interest charged that month.
How this is calculated
Formula
minimumPayment = max(balance × percent / 100, floor) ; balance = (balance + interest) − minimumPaymentStep-by-step
- Each month, accrue interest on the current balance: interest = balance × (annualRate / 12 / 100)
- Calculate the minimum payment as the larger of (balance × minimum percent) and the dollar floor
- If the resulting principal portion is zero or negative, the balance never pays off — surface a dead-end recovery
- Otherwise, deduct the minimum payment from the balance plus interest
- Repeat until the balance reaches zero or the simulation cap of 600 months is hit
- Compare against a fixed-payment scenario (paying month one's minimum every month) to show the saving from breaking the declining-minimum trap
- Rounding mode
- ROUND_HALF_UP
- Precision
- 20-digit internal precision (Decimal.js), rounded to 2 decimal places for display
- Logic last reviewed
Assumptions & limitations
What this calculator assumes
- Interest accrues monthly at (annual rate / 12)
- Minimum payment each month equals max(balance × percent / 100, dollar floor)
- Simulation continues until balance falls below the floor, then the remainder is paid off in full
- Simulation is capped at 600 months (50 years)
- No new charges are added to the balance during the payoff
What this calculator doesn’t account for
- Does not model new spending added to the card during the payoff period
- Does not include late fees, over-limit fees, or annual fees
- Does not factor in promotional or balance-transfer rates expiring
- Does not model variable APR changes mid-payoff
- Does not include rewards earned on the original spend
Worked example
A cardholder has a $5,000 balance at 22% APR and pays only the minimum, calculated as 2% of the balance with a $25 floor.
| Input | Value |
|---|---|
| Starting balance | $5,000 |
| Annual rate | 22% |
| Minimum percent | 2% |
| Minimum floor | $25 |
Payoff time: ~25+ years — Total interest paid: more than the original balance
Month one's minimum is $100 (2% of $5,000), but interest is ~$92 — so only $8 of principal is reduced. Month two's minimum is calculated on $4,992, so it shrinks to ~$99.84 while interest is still ~$91.50. Each minimum is barely beating interest by a few dollars, and the gap keeps narrowing. Switching to a fixed $100 monthly payment instead would clear the same balance in roughly 8 years and save the bulk of the interest.
Frequently asked questions
Why do minimum payments barely reduce the balance?
Because the minimum is a percentage of the current balance. As the balance shrinks, the minimum shrinks with it — but interest is also a percentage of the balance, so the gap between minimum and interest stays small for a very long time. The first month's payment might be 2× the interest; by year two it's barely 1.1× the interest, and the principal portion is a few dollars.
How is the minimum payment calculated?
Most cards use either a flat percent of the balance (commonly 1–3%), a percent plus accrued interest, or the larger of (percent × balance) and a dollar floor. This calculator uses the third method — percent or floor, whichever is larger. The floor exists so very small balances still see a meaningful payment, but it only kicks in once the balance is tiny.
How long will it take to pay off at minimum?
Decades, typically. A $5,000 balance at 22% APR on 2% minimums takes roughly 25 years to clear under this calculator's model — you'll pay more in interest than the original balance. Doubling the monthly payment from the start usually cuts payoff time by more than half because every extra dollar attacks the interest-bearing principal.
What is a minimum payment trap?
It's the situation where the minimum is just barely covering the interest, so almost no principal is paid down — and because the minimum shrinks with the balance, that situation persists. The trap isn't the rate; it's the structure. Switching to a fixed payment (the original month one minimum, kept constant as the balance falls) breaks the trap immediately.
What's the fastest way to escape the trap?
Three options, in order of effectiveness: (1) pay a fixed amount higher than the current minimum every month — this calculator shows exactly how much faster that clears the balance; (2) transfer the balance to a 0% promotional card and pay it down before the promo ends; (3) consolidate into a fixed-term personal loan, which forces a definite payoff date and usually lower rate.
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