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LunaCalc

Finance

Credit Card Minimum Payment Calculator

Compare minimum versus fixed credit card payments, interest, and payoff time.

Calculator

About this calculator

This credit card minimum payment calculator compares a fixed-payment plan with minimum-only payments, showing interest paid and time to pay off.

Formula notes

Periodic rate eq_p = (1 + r/m)^(m/q) − 1; the minimum payment is max(balance × percentage [+ interest], floor amount); each month the balance changes by payment − interest.

Worked examples

  1. Example: a $2,000 balance at 18% APR with a $100 fixed payment clears in about 18 months with about $214 of interest, while minimum-only payments take about 86 months and about $1,011 of interest.
  2. A $2,000 balance at 18% APR with $100 fixed payments clears in about 18 months with about $214 of interest; minimum-only payments take about 86 months and about $1,011.

How to use it

  1. Enter the statement balance and APR.
  2. Choose fixed payments or minimum payments, and set the percentage or floor.
  3. Compare payoff time and total interest between the two schedules.

Frequently asked questions

Why does minimum-only payment take so much longer?

Most of a minimum payment covers interest at first, so the principal shrinks slowly and interest keeps accruing for years.

Which compounding does the calculator use?

It uses the statement APR with the compounding frequency you select, and the schedule follows the captured calendar-month branches for monthly payments.

Limits and interpretation

  • The schedule assumes no new charges, no late fees, no promotional rates, and on-time payments exactly as configured.
  • Issuers compute minimum payments differently; the calculator follows the captured percentage-plus-interest and floor-amount rules you configure.

References