Minimum Payment Calculator
Minimum payments keep you in debt much longer than you might think. See what paying only the minimum really costs you over time.
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Enter your details to see the shocking difference.
Warning: Minimum Payments Cost You
| Minimum Payments | Your Payment | You Save | |
|---|---|---|---|
| Time to Payoff | — | — | — |
| Total Interest | — | — | — |
| Total Paid | — | — | — |
| First Payment | — | — | — |
What Is a Minimum Payment?
Typically, the minimum payment is 2% of your balance or $25, whichever is greater. Different card issuers may use different formulas (1-2% of balance, interest+fees+portion of principal, or a fixed dollar amount).
Example: On a $5,000 balance at 24.99% APR:
- Minimum payments (2% of balance or $25): At 24.99% APR, the 2% minimum payment may be less than or close to the monthly interest — so this balance could take decades to pay off. Even a small increase in your monthly payment makes a dramatic difference.
- $200 fixed payment: 36 months and $2,135 in interest
When the minimum barely covers interest, paying just the minimum can stretch a short-term debt into a multi-decade obligation.