Credit Card Minimum Payment Calculator
Estimate your monthly credit-card minimum payment from your balance, APR, the issuer's percent-of-balance rule, and the fixed floor amount.
How to use this tool
- Enter your statement balance.
- Enter the purchase APR and the issuer's minimum-percent rule (often 1%–3%).
- Enter the fixed floor amount (commonly $25 or $35).
- Read the minimum payment and how much of it is interest versus principal.
See your monthly minimum payment and how little of it actually reduces your balance. Enter your balance, APR, the issuer's percent rule, and the dollar floor.
Formula
Minimum payment = max(Balance × Minimum %, Floor amount)
Monthly interest = Balance × APR ÷ 12
Principal portion = Minimum payment − Monthly interest (never below 0)
The minimum is capped at the balance plus its interest — you never owe more than the full payoff.
How it works
Card issuers set the minimum payment with a two-part rule: a percent of the balance (commonly 1%–3%) or a fixed dollar floor (often $25–$35), whichever is larger. Some issuers add accrued interest and fees on top; this calculator uses the widely-disclosed greater-of rule and shows how much of that minimum is interest versus principal so you can see why paying the minimum barely moves the balance.
The interest portion is the monthly periodic rate (APR ÷ 12) applied to the balance. When the percent component is small, almost the entire minimum can be eaten by interest — a high balance at a high APR can produce a minimum that pays down essentially no principal. The percent rule, the floor, and the APR are all editable so the estimate matches your specific card and issuer.
Reviewed by the AbraCalc Credit Desk. This is general information, not financial advice; confirm your card's terms (APR, fees, minimum-payment rule) with your issuer or a qualified advisor.
Worked example
$2,000 balance, 24% APR, 2% rule, $25 floor
- Monthly interest = 2,000 × 24% ÷ 12 = 40.
- Percent component = 2,000 × 2% = 40.
- Minimum payment = max(40, 25) = 40.
- Principal portion = 40 − 40 = 0 (the whole payment covers interest).
Estimated minimum payment = $40.00 (interest $40.00, principal $0.00)
Minimum payment by balance (2% rule, $25 floor, 24% APR)
| Balance | 2% of balance | Minimum payment | Interest in payment |
|---|---|---|---|
| $500 | $10.00 | $25.00 | $10.00 |
| $1,000 | $20.00 | $25.00 | $20.00 |
| $1,250 | $25.00 | $25.00 | $25.00 |
| $2,000 | $40.00 | $40.00 | $40.00 |
| $3,000 | $60.00 | $60.00 | $60.00 |
| $5,000 | $100.00 | $100.00 | $100.00 |
| $10,000 | $200.00 | $200.00 | $200.00 |
Key terms
- Minimum payment
- The smallest amount you can pay by the due date to keep the account current.
- Percent-of-balance rule
- The component that takes a fixed percent (e.g. 2%) of the statement balance.
- Floor amount
- The fixed dollar minimum (e.g. $25); the payment is never below this while a balance exists.
- Monthly periodic rate
- APR divided by 12 — the rate the issuer applies to the balance each month.
Frequently asked questions
- Why does paying the minimum barely reduce my balance?
- Because most of the minimum can be interest. When the percent component roughly equals the monthly interest, almost no principal is paid, so the balance lingers for years.
- How do issuers set the minimum payment?
- Most use the greater of a percent of the balance (often 1%–3%) or a fixed floor such as $25–$35. Some add fees and accrued interest on top; check your cardholder agreement.
- Is paying only the minimum bad?
- It keeps the account current but maximizes interest paid and stretches payoff over many years. Paying more than the minimum dramatically cuts total interest and time to zero.