Credit Card Minimum Payment Calculator
Payoff months and interest paying only card minimums.
What it does
Minimum payments stretch card debt across years by design. A $1,000 balance at 18 % with 2 % / $25 minimums takes 62 months and $538.62 in interest, more than half the balance again. The monthly math is quiet; the total is loud.
The tool above simulates month by month the way disclosures do. Interest posts at APR/12, the payment takes the greater of the percent and the floor, and the loop runs to zero with a 600-month guard. An interest-only trap returns a clear warning instead of a fake payoff date.
Regulators mandate this exact lens. CFPB disclosures show the minimum-only payoff horizon with no new charges beside the 36-month payment, and Regulation Z Appendix M1 works the 2-percent-or-$20 example. FTC card guidance adds the warning: minimums mean interest on the rest, for longer.
The escape is fixed payments. The same $1,000 at a flat $50 a month clears in about two years for a fraction of the interest. Use the minimum total as the scare quote, then automate a fixed amount above it.
How to use
- Enter the card balance.
- Enter the APR.
- Enter the minimum percent, often 2.
- Enter the dollar floor, often $25.
- Read months first, then interest and total.
- Compare against a fixed payment plan.
Formula
- balance
- Starting card balance in dollars.
- APR
- Annual rate in percent.
- pct
- Percent leg of the minimum, often 2.
- floor
- Dollar floor leg, often $25.
CFPB Regulation Z Appendix M1 uses the account minimum formula (example 2 % or $20) with no new credit. The $25 floor is the common commercial variant.
Worked example
Example: $1,000 at 18%
Defaults: $1,000 at 18 % with 2 % / $25 minimums.
- Inputs: $1,000 balance, 18 % APR, 2 % / $25 minimum.
- Month 1: pay $25, interest $15, balance $990.
- Simulation repeats: $25 a month against 1.5 % monthly.
- Result: 62 months to zero.
- Totals: $1,538.62 paid, $538.62 interest. Tool shows 62 months, $538.62, $1,538.62.
Reference table
| Case | Months | Interest |
|---|---|---|
| $1,000 at 18%, 2%/$25 | 62 | $538.62 |
| $300 at 23%, 5%/$15 | 26 | $81.98 |
| $2,000 at 18%, 2%/$25 | 187 | $3,327.76 |
| $5,000 at 24%, 2%/$25 | never | interest-only trap |
Limits
- No new charges assumed. Spending restarts the climb.
- One APR only; penalty and cash rates differ.
- Fees and rate changes sit outside the loop.
- 600-month guard caps pathological inputs.
Common mistakes
- Paying minimums while still charging.
- Reading months without the interest total.
- Assuming the floor always binds.
- Ignoring the 36-month box on statements.
- Refinancing without closing the leak.
Try it yourself
Quick checks. Answers sit tucked under each question.
$300 at 23 % with 5 % / $15?
5 % of 300 = $15 floor binds. Simulated: 26 months, $381.98 total, $81.98 interest.
$2,000 at 18 % with 2 % / $25?
2 % of 2,000 = $40 payment vs $30 interest. Simulated: 187 months, $5,327.76 total, $3,327.76 interest.
Questions
How long at minimums on $1,000?
Monthly simulation: interest at APR/12, payment the percent-or-floor minimum, until zero. Here 62 months and $538.62 interest.
How is each payment figured?
The greater of the percent and the floor: max(2 % of balance, $25). On $1,000 that is $25.
Can minimums never pay off?
Yes. At $5,000 and 24 % the $100 minimum matches $100 interest, so the balance never falls.
How do fixed payments compare?
Fixed payments finish years sooner. Paying $50 fixed on the example clears it in about 24 months.
What must statements show?
Federal disclosures show the minimum-only payoff time and the 36-month payment beside it. Read both boxes.
Does this include new purchases?
No. New charges restart the climb; the math assumes minimums only with no new spending.
Sources
- CFPB: Minimum Payment Disclosures (36-month box)
- CFPB Regulation Z Appendix M1 (2% or $20 method)
- FTC: Using Credit Cards (minimums and interest)