Credit Card Minimum Payment Calculator
Calculate minimum payment requirements and compare with fixed payment scenarios
Specifications
Total balance on your credit card statement
Next payment due date
Annual percentage rate on your credit card
How often interest compounds
Payment Settings
Absolute minimum payment required
Percentage of balance for minimum payment
Compare with fixed payment amount
Minimum Payment Results
Enter your statement balance and APR to calculate your minimum payment
Example Minimum Payment Calculations
Flat Percentage Method
Balance: $1,500 | Minimum %: 3% | Floor: $25
Calculation: $1,500 × 3% = $45
Result: $45 (since $45 > $25 floor)
Percentage + Interest Method
Balance: $1,500 | APR: 18% | Min %: 1%
Monthly Interest: $1,500 × (18% ÷ 12) = $22.50
Percentage Portion: $1,500 × 1% = $15
Result: $15 + $22.50 = $37.50
Minimum Payment Insights
Minimum vs Smart
Paying only minimums extends payoff time and increases total interest
CARD Act Protection
Issuers must show payoff time and total cost on statements
Payment Methods
Issuers use flat percentage or percentage + interest methods
Floor Protection
Minimum payments have floor amounts (typically $15-$35)
Smart Payment Strategies
Understanding Credit Card Minimum Payments
How Minimum Payments Are Calculated
Credit card issuers typically use one of two methods to calculate minimum payments: flat percentage of the balance or percentage plus interest and fees.
Payment Methods
Flat Percentage
Minimum = Balance × Percentage (usually 1-3%)
Percentage + Interest
Minimum = (Balance × %) + Interest + Fees
Key Requirements
- ✓CARD Act 2009: Issuers must show payoff time on statements
- ✓Floor Amounts: Minimums typically have $15-$35 floors
- ✓Late Fee Avoidance: Pay minimum by due date
- ✓Credit Score: Minimum payments help maintain credit
Why Pay More
- 💰Reduce total interest paid significantly
- ⏱️Pay off debt months or years earlier
- 📈Improve credit utilization ratio
Common Minimum Payment Ranges
Strategic Payment Tips
- 1.Pay more than minimum whenever possible
- 2.Make bi-weekly payments to reduce interest
- 3.Target high-interest cards first (avalanche method)
- 4.Set up automatic payments to avoid late fees
- 5.Consider balance transfers for better rates