Minimum Payment Calculator
Estimate the minimum credit card payment, time to pay off your balance, and total interest based on your balance, APR, and payment rules.
Overview
This minimum payment calculator helps you estimate your first credit card minimum payment and shows how your balance, APR, minimum payment rate, fixed minimum, and any extra payment may affect payoff time and interest costs.
How it works
The calculator estimates your first minimum payment by taking the greater of a percentage of your balance or a fixed minimum amount, then adding any extra payment you choose. It estimates first-month interest using the APR converted to a monthly rate. From there, it approximates how much of your payment reduces the balance and uses that to estimate payoff time and total interest. Because real card minimum payments usually change every month as your balance changes, the results are best used as a rough guide.
How to use this calculator
- 1Enter your current credit card balance.
- 2Add your card APR.
- 3Enter the minimum payment percentage used by your card issuer.
- 4Enter the fixed minimum payment amount if your card uses one.
- 5Add any extra monthly payment you plan to make.
- 6Review the estimated minimum payment, payoff time, and total interest.
Example Calculation
Current balance
$5,000
Annual percentage rate (APR)
20%
Minimum payment rate
2%
Fixed minimum payment
$25
Extra monthly payment
$50
Estimated minimum payment
$150.00
For a $5,000 balance at 19.9% APR with a 2% minimum payment rule, a $25 fixed minimum, and $50 extra each month, the estimated first-month payment is about $150, with a much faster payoff than paying the minimum alone.
Frequently asked questions
What does this minimum payment calculator estimate?
It estimates your first-month minimum payment, approximate payoff time, total interest, and total repayment for a credit card balance.
How is the minimum payment calculated?
It uses the greater of a percentage of your balance or a fixed minimum payment, then adds any extra monthly payment you enter.
Why is the payoff time only an estimate?
Most credit card minimum payments change as your balance falls, so the calculator uses a simplified approach based on your starting balance and first-month payment.
Does this calculator include fees or new purchases?
No. It assumes you do not add new charges and that no fees, penalties, or other costs are added to the account.
Can I use this calculator to compare paying extra each month?
Yes. Increasing the extra monthly payment can help you see how paying more than the minimum may reduce payoff time and interest.
What if my card issuer uses a different minimum payment rule?
If your issuer uses a different method, adjust the percentage and fixed minimum inputs to get a closer estimate, but check your card terms for exact details.
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Assumptions and warnings
Assumptions
- This calculator provides an estimate using a simplified minimum payment method based on your current balance.
- It assumes the APR stays the same over time and interest is charged monthly.
- It assumes no new purchases, fees, penalties, or balance transfers are added to the card.
- Payoff time and total interest are approximate because actual minimum payments usually decline as the balance falls.
Warnings
- This calculator provides an estimate only and is not financial advice.
- Actual credit card terms, fees, and minimum payment rules vary by lender.
- Speak to a qualified professional before making major financial decisions.