Credit Card Minimum Payment Calculator
See how your issuer's minimum payment is calculated — and the true cost of paying only the minimum every month.
Last updated September 2026 · Reviewed by the CalcMyCard editorial team
Most issuers calculate your minimum payment as either a flat 1-3% of your balance, or that percentage plus interest and fees (whichever is greater), subject to a $25-$35 floor. Enter your numbers below to estimate yours — and see how long "minimum only" would really take.
Your minimum payment is the smallest amount your issuer will accept without penalty — but it's set deliberately low. Understanding how it's calculated, and what happens if you never pay more than it, is one of the most important things you can know about your credit card.
How issuers calculate the minimum
There's no single universal formula, but nearly every issuer uses one of two approaches: a flat percentage of your statement balance (commonly 1-3%), or your accrued interest plus roughly 1% of the principal, whichever is larger — always with a fixed dollar floor so very small balances still generate a minimum payment worth collecting. This calculator lets you model either style.
The real cost of paying only the minimum
Because the minimum payment is a percentage of a shrinking balance, it shrinks too — which means payoff drags on for years, sometimes decades, while interest keeps compounding. On a typical mid-size balance at a typical APR, paying only the minimum can mean paying more in interest than the original balance itself. The simulation above shows this scenario using your own numbers, not a generic example.
Where to find your actual minimum
Your real minimum payment is printed on every statement and in your card's cardholder agreement, which spells out the exact formula your issuer uses (look for "minimum payment calculation" in the terms). This calculator's default settings mirror the most common formula, but check your own agreement if you want an exact match.
What to do next
If the "minimum only" numbers above surprised you, the fix is usually simpler than it looks: even a modest fixed amount above the minimum changes the entire trajectory. See the Extra Payment Savings Calculator to find out exactly how much difference a specific extra amount makes for your balance.
Frequently Asked Questions
How is a credit card minimum payment calculated?
Most issuers use one of two formulas: a flat percentage of your balance (commonly 1-3%), or that percentage plus that month's interest and fees, whichever is greater, with a fixed dollar floor (often $25-$35). This calculator lets you model either style.
Why is my minimum payment so low compared to my balance?
Issuers set minimums low on purpose — a low minimum keeps you paying (and being charged interest) for longer, since a 1-2% minimum barely outpaces the interest accruing on a high-APR balance.
What happens if I only ever pay the minimum?
On a typical balance, paying only the minimum can take 15-30+ years to reach zero and can cost more in interest than the original balance itself. See the Credit Card Payoff Calculator to compare minimum-only payoff against a higher fixed payment.
This calculator provides estimates for educational purposes only and is not financial, tax, or legal advice. Your card issuer's actual calculation may differ slightly based on its compounding method, fees, and grace period rules — always confirm against your official statement.