Minimum Payment Calculator — The True Cost of Paying the Minimum
The minimum payment is engineered to keep you in debt: it's typically just the month's interest plus 1% of the balance. See what your balance takes to clear at minimums — the number that convinces most people to pay more.
- Total interest at minimums
- $8,099.77
- Your first minimum payment
- $141.67
How this calculator works
- Modeled as the common issuer formula: monthly interest + 1% of the balance, with a $25 floor. Because the payment shrinks as the balance shrinks, progress decelerates — the last $1,000 takes years.
- Your statement's 'Minimum Payment Warning' box shows this same math for your actual account — a CARD Act disclosure most people never read.
Frequently asked questions
Why do minimums take decades?
Early on, most of the payment is interest; and as the balance falls, the payment falls with it, stretching the tail almost indefinitely. A $5,000 balance at 22% takes roughly 20+ years at minimums.
What if I pay just $50 more than the minimum?
Fixed extra amounts break the shrinking-payment spiral — even modest fixed payments typically cut payoff time by 60–80% versus minimums. Use the payoff calculator to see your number.
Do minimum payments hurt my credit?
They count as on-time payments, so no direct harm — but the persistently high utilization they allow does suppress your score.
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Disclaimer: Results are estimates for educational purposes only and are not tax, legal, or financial advice. Tax rules are simplified (credits, phase-outs, and local taxes may not be modeled). Verify important decisions with the IRS, your state tax authority, or a licensed professional.