Minimum Payment Calculator
See how long it takes to pay off debt making only minimum payments — and how much interest you'll waste. Compare minimum payments against a fixed payment strategy.
The True Cost of Minimum Payments
Credit card minimum payments are designed to keep you in debt longer. Enter your balance and APR to see exactly how long minimum-only repayment takes, how much interest you'll pay, and how a fixed payment changes the outcome.
- Minimum payment timeline: How many years minimum payments extend your debt
- Total interest on minimums: The full interest cost of the minimum-payment trap
- Fixed payment comparison: Payoff date and interest savings with a constant payment
- Breakeven analysis: How much extra per month achieves payoff in 1, 2, or 3 years
How Credit Card Minimum Payments Work
- Typical minimum: Usually 1–2% of the outstanding balance, or $25–35, whichever is greater
- Shrinking payments: As your balance falls, so does the minimum — this extends repayment because you're paying less and less each month
- Interest-first allocation: Most of each minimum payment covers interest, with only a small fraction reducing principal — especially early on
- The trap: On a $10,000 balance at 22% APR, the minimum payment in month 1 might be $200 — but only $16 reduces principal
Better Alternatives to Minimum Payments
- Fixed payment strategy: Pay the same amount every month regardless of the minimum — as balance falls, more goes to principal automatically
- Avalanche method — Target highest-APR card first with any extra money; pay minimums on others
- Snowball method — Target smallest balance first for psychological wins; pay minimums on others
- Balance transfer: Moving high-APR debt to a 0% intro APR card eliminates interest for 12–21 months — but requires discipline to pay it off before the intro period ends
Frequently Asked Questions
How long does it take to pay off $5,000 in credit card debt on minimum payments?
At 20% APR with a starting minimum of ~$100/month (2% of balance), minimum-only repayment takes approximately 19–22 years and costs $5,000–6,500 in interest on top of the original $5,000 principal. The exact duration depends on how the card calculates the minimum and whether you continue charging. Paying a fixed $150/month instead reduces the payoff to under 4 years.
Is paying only the minimum bad for your credit score?
Making at least the minimum payment on time is positive for your credit score — it shows on-time payment history. However, carrying a high balance relative to your credit limit (high utilization) hurts your score. If your $5,000 balance is on a card with a $6,000 limit, your utilization is 83% — significantly dragging down your score regardless of on-time payments. Paying down the balance improves both your finances and your credit score.
What happens if I pay less than the minimum?
Paying less than the minimum is reported as a missed or partial payment. It triggers a late fee ($25–$40), can cause a penalty APR (often 29.99%), and is reported to credit bureaus after 30 days — damaging your credit score. Always pay at least the minimum on time; prioritize extra payments toward the highest-rate debt after covering all minimums.