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Credit Card Minimum Payment Calculator

See your credit card minimum payment in seconds

How it is calculated

Four inputs: the statement balance, the APR as a percent, the minimum percentage of the balance, and a fixed floor amount. The tool computes one month's interest, interest = balance × (APR ÷ 100 ÷ 12), then the percentage-based payment balance × min% ÷ 100 + interest. The minimum payment is the larger of that figure and the floor, but never more than the full balance plus interest, so a small balance is simply paid off. The principal portion is the payment minus the interest, never below zero. Amounts are shown in dollars. The tool uses a simple monthly rate of APR ÷ 12 and does not model daily compounding, late fees, promotional rates or the exact wording of any one issuer's terms, which differ between cards and countries, so check your statement for the real figure.

Worked example

The balance is $4,000, the APR is 24%, the minimum percentage is 1% and the floor is $35. Monthly interest: 4,000 × 24 ÷ 100 ÷ 12 = $80. Percentage payment: 4,000 × 1% = 40, plus 80 interest, gives 120. The floor of 35 is lower, so the larger value wins: $120.00. Of that, $80.00 is interest and only $40.00 reduces the balance.

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Common mistakes

  • Entering the APR as a decimal such as 0.24. The field takes 24 for 24%.
  • Expecting the floor to apply to any balance. On a larger balance the percentage-plus-interest amount is usually higher, so the floor only matters for small balances.
  • Believing the minimum payment pays down much principal. In the example, two thirds of the payment is interest.
  • Using the credit limit instead of the statement balance. The calculation is based on the balance you owe now.
  • Treating the minimum as the amount to pay. It is the lowest allowed payment; paying more cuts interest, since it falls with the balance.

Sources

About this calculator

Most U.S. issuers calculate the minimum payment as whichever is larger: a small percentage of the statement balance (commonly 1-3%) plus that month's accrued interest, or a fixed floor amount (often $25-35) meant to guarantee the balance actually shrinks over time. This calculator reproduces that greater-of comparison.

Under the CARD Act, U.S. issuers must print a minimum-payment warning on each statement showing how long paying only the minimum would take to clear the balance, and it matters far beyond the sticker-shock of a small monthly number: paying only the minimum on a high-APR balance can stretch payoff into decades and multiply the total interest paid many times over, which is exactly why the number is worth checking before deciding to pay more.

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Comments (1)

  • Editorial team

    Look at the principal portion: on a balance of 3,000 at 24 percent APR with a 1 percent minimum, the payment is 90 and 60 of that is interest, leaving only 30 against the balance. Card issuers set their own formulas, so this is an estimate built from the percentage and floor you enter, and your statement is the final word. Which minimum rule does your card use?

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