Minimum Payment Calculator

Use our free minimum payment calculator to understand the true cost of making only minimum payments on your credit card. See the payoff timeline and total interest accrued.

Financial

Currency

Credit Card Balance

Annual Interest Rate (APR)

Minimum Payment % of Balance

Minimum Flat Amount

Formula

Making only the minimum payment on credit cards can extend your debt for decades. This calculator shows the true cost of minimum payments and motivates you to pay more.

Min payment = max(balance x minPct, flat min); Iterate until balance reaches zero

Percentage: The percentage value you want to apply

Number: The original number or value

Result: The calculated result

How It Works

1Enter your current credit card balance and APR.
2Enter the minimum payment percentage and flat minimum amount.
3The calculator simulates month-by-month amortization with minimum payments only.
4See total interest paid and total payoff time.

Examples

,000 at 18% APR, 2% min / flat

1.Month 1 min: max(, ) =
2.Interest: , principal:
3.This continues for ~28 years

Result: 28+ years, ,368 interest

Frequently Asked Questions

The minimum payment trap occurs when you only pay the minimum due each month. Because most of the payment covers interest, the principal decreases very slowly, extending payoff time to decades.

Typically, it is the greater of a percentage of your balance (usually 1-3%) or a flat minimum amount (usually -35), plus any past-due amounts and fees.

Missing a minimum payment results in late fees, penalty APR (up to 29.99%), and negative credit reporting after 30 days. Always pay at least the minimum on time.

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The Cost of Minimum Payments

CalculateMe Team

Last updated: 2026-07-17

Frequently Asked Questions

The minimum payment trap occurs when you only pay the minimum due each month. Because most of the payment covers interest, the principal decreases very slowly, extending payoff time to decades.

Typically, it is the greater of a percentage of your balance (usually 1-3%) or a flat minimum amount (usually -35), plus any past-due amounts and fees.

Missing a minimum payment results in late fees, penalty APR (up to 29.99%), and negative credit reporting after 30 days. Always pay at least the minimum on time.

Minimum Payment Calculator

Formula

How It Works

Examples

,000 at 18% APR, 2% min / flat

Frequently Asked Questions

What is the minimum payment trap?

How is my minimum payment calculated?

What happens if I miss a minimum payment?

Related Calculators

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Minimum Payment Calculator

Formula

How It Works

Examples

,000 at 18% APR, 2% min / flat

Frequently Asked Questions

What is the minimum payment trap?

How is my minimum payment calculated?

What happens if I miss a minimum payment?

Related Calculators

Related Articles