How to Calculate Your Credit Card's Minimum Payment
Last updated September 2026 · Reviewed by the CalcMyCard editorial team
Most issuers calculate your minimum payment as either a flat 1-3% of your statement balance, or your accrued interest plus about 1% of principal (whichever is greater), always with a fixed dollar floor of roughly $25-$35.
Your minimum payment isn't random — it follows one of a small number of standard formulas, which you can find spelled out in your cardholder agreement. Here's how to work it out yourself.
Formula 1: Flat percentage of balance
The simplest formula: minimum payment = balance × a fixed percentage (commonly 1-3%). A $3,000 balance at 2% produces a $60 minimum — unless that's below the issuer's dollar floor, in which case the floor applies instead.
Formula 2: Interest plus a slice of principal
The more common formula on major cards: minimum payment = this cycle's accrued interest + roughly 1% of the principal balance (sometimes plus any fees), with the same percentage-of-balance calculation used as a fallback minimum, whichever is greater. This formula ensures the minimum at least covers the interest charged, so the balance (very slowly) declines even at the minimum.
The dollar floor
Almost every issuer sets an absolute minimum dollar amount — often $25 or $35 — that applies regardless of the percentage formula, so very small balances still generate a minimum payment worth collecting.
Worked example
A $2,500 balance at 24% APR, using the "interest plus 1%" formula: monthly interest is about $50 (2,500 × 24% ÷ 12), plus 1% of principal ($25), for a minimum of about $75. Compare that to a flat 2% formula, which would produce a $50 minimum on the same balance — a meaningful difference in how fast the balance actually declines.
Why this formula matters more than people realize
Because the minimum is a percentage of a shrinking balance, it shrinks along with it — which is part of why "minimum only" payoff plans can stretch out for decades. See our guide on how long minimum payments really take for real-world timelines.
Estimate yours
Use the Minimum Payment Calculator to model either formula against your own balance and see the full minimum-only payoff simulation.
Frequently Asked Questions
Where can I find my card's exact formula?
Your cardholder agreement (available in your online account or upon request) spells out the exact minimum payment calculation your issuer uses.
Can my minimum payment go up even if I don't add new charges?
Yes — if you miss a payment or trigger a penalty APR, some issuers increase the minimum payment calculation as a result.
This article is for general educational purposes and is not financial advice. Rates and figures cited reflect industry data available at the time of writing and can change.