It scales with your balance
Most issuers calculate the minimum as 1% to 3% of your current balance plus interest. As you pay down, the minimum drops too, so each month a smaller share goes to principal.
Minimum payment calculator
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If you only pay the minimum
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Minimum doesn't cover interest
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Interest you'd save
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Calculations are estimates for educational purposes only and do not constitute financial advice. Actual payoff timelines, interest charges, and credit outcomes may vary.
Why minimums are a trap
The minimum payment is designed to keep you in debt.
Interest eats most of it
On a high-APR card, most of the minimum is just covering this month's interest. Only the leftover knocks down principal, sometimes only a few dollars per month.
A small bump changes everything
Adding $50 to $100 above the minimum can cut years off your payoff and save thousands in interest, because every extra dollar goes straight to principal.
Combine with a 0% APR window
If you can move the balance to a 0% APR card, every payment goes to principal for the length of the promo. Pair that with our balance-transfer tools below.
FAQ
Frequently asked questions
Most issuers charge the greater of a flat floor ($25 to $35) or a percentage of your balance (typically 1% to 3%) plus that month's interest and any fees. As your balance shrinks, the dollar minimum shrinks with it, which is what makes minimum-only payoff so slow.
On a $5,000 balance at 24.99% APR with a 2% minimum, you'd spend roughly 25+ years paying it off and triple the original balance in interest. The exact number depends on your APR and your issuer's minimum formula, so run the calculator above with your real numbers.
Paying at least the minimum on time protects your payment history. But carrying a high balance keeps your utilization high, which hurts your score. Paying above the minimum lowers utilization faster.
Even a small extra payment dramatically shortens the payoff. Doubling the minimum often cuts the timeline by 60% to 70% and the total interest by more. The calculator above shows the dollar savings for your card.