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Home / Money lab / Credit card minimums

How long does paying the minimum take?

Pay only the minimum on a credit card balance, then compare it with a fixed monthly payment. Time and interest, month by month.

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Credit card minimums calculator

Credit card minimums inputs

22% is an example. Use the APR printed on your statement.

Show the math

Each month the card charges interest at APR ÷ 12 on the balance, then your payment comes off. Card issuers set their own minimum payment formula in the cardholder agreement; the three most common shapes are here:

interest + 1%: payment = balance × APR/12 + balance × 1%   ·   2% / 3%: payment = new balance × 2% (or 3%)
  • The payment is never below the “smallest minimum” (often $25 to $40) and never more than what you owe.
  • If a payment doesn't even cover the month's interest, the balance never shrinks. The calculator says so instead of printing a fake end date.
  • Real cards charge a daily rate on your average daily balance, so the exact cents differ a little. New purchases, fees and penalty APRs are not included.
  • In the U.S., the Credit CARD Act of 2009 requires your statement to show how long paying only the minimum would take. Compare it with this.

How minimum payments are calculated

Each card issuer sets its own formula in the cardholder agreement. Common shapes are “interest plus 1% of the balance” and “2% to 3% of the balance”, with a dollar floor such as $25 or $35. Because the minimum shrinks as the balance shrinks, paying only the minimum stretches the debt out for years.

The warning on your statement

In the U.S., the Credit CARD Act of 2009 requires monthly statements to show how long it would take to pay off the balance with minimum payments only, the total cost, and the monthly payment that would clear it in three years. This calculator does the same arithmetic for any balance and rate.

What it leaves out

New purchases, late fees, penalty APRs and promotional rates. Real cards also use a daily rate on your average daily balance, so the cents differ slightly from a monthly calculation.