Minimum Payment Calculator See how long it takes to pay off credit card debt with minimum payments — and how much interes...

Minimum Payment Calculator

See how long it takes to pay off credit card debt with minimum payments — and how much interest you’ll waste.

Standard

Flat %

Custom

Current Balance ($)

APR (%)

Issuer Method Chase (1% + interest, $25 min) Citi (1% + interest, $35 min) Amex (1% + interest, $35 min) Capital One (0.6% + interest, $25 min)

Balance ($)

APR (%)

Minimum %

Balance ($)

APR (%)

% of Balance

+ Interest? Yes No

Absolute Min ($)

$0

Minimum Payment

—

Payoff Time

$0

Total Interest

0%

Interest / Principal

Debt Spiral: Minimum vs. Fixed Payment

How Minimum Payments Are Calculated

Most U.S. issuers use one of two methods (per CARD Act & Regulation Z):

• 1% + Interest + Fees with a $25–$35 absolute minimum → Example: $5,000 balance @ 24% APR → Interest = $5,000 × 0.24 / 12 = $100 1% of balance = $50 Min = $50 + $100 = **$150** (no floor needed)
• 2% Flat %** (older cards, some store cards) → $5,000 × 2% = **$100**

The 25/75 Rule** (common): • $25 minimum if balance ≥ $2,500 • 1% of balance if < $2,500 → $2,000 balance → $20 min payment

⚠️ Late payment? Penalty APR (29.99%) triggers after 60 days — minimum jumps 20–50%.

Why Minimum-Only Is a Trap

✅ Real 2025 Example: • $5,000 balance @ 24% APR • Minimum = $125/mo (1% + interest) → 33 years, 6 months** to pay off → $9,800 interest** (196% of principal!) → Final payment: $9.24 after 402 payments

✅ Smart Alternative: Pay $200/mo → 3 years, 1 month** → $1,040 interest** → **Save $8,760** and 30+ years

📉 Rule of Thumb: If interest > 20%, pay at least 5% of balance monthly** to avoid decades-long debt.

CARD Act & Your Rights

The 2009 CARD Act requires issuers to:

• Show 3-year payoff amount** on every statement (e.g., “To pay off in 3 years: $200/mo”)
• Disclose total interest & years** if paying only minimum
• Apply payments > minimum to highest-APR balances first**
• Give 45-day notice before rate hikes

⚠️ But: No cap on APR, no limit on fees, and no requirement to make minimums reasonable**.

✅ Pro Tip: Use the 3-year number on your statement — it’s mathematically optimal for most consumers.

How to Use This Calculator

➡️ Standard Mode

Select your issuer — the tool applies real-world formulas (1% + interest, $25 min).

➡️ Flat % Mode

For store cards or older accounts that use pure % (e.g., 2% of balance).

➡️ Custom Mode

Model unique rules: “1.5% + $10”, “$35 or 1%”, etc.

You’ll see:

• Exact minimum payment
• Years to payoff at minimum
• Total interest (often shocking!)
• Interest-to-principal ratio

Note: Assumes no new charges, fixed APR, and on-time payments.