This calculator shows what happens if you only ever pay the minimum on a credit card. The answer is usually measured in decades. Enter your balance and APR, and the minimum payment formula from your card agreement (most cards use a percentage of the balance with a dollar floor).
Why the minimum payment is designed this way
Your card agreement typically sets the minimum at something like 1%–3% of the balance (or interest plus a small percentage), with a floor around $25–$40. Because it’s a percentage, it shrinks as your balance shrinks — which quietly stretches the payoff and maximizes the interest collected. Federal law requires your statement to carry a minimum-payment warning box for exactly this reason. The single cheapest fix costs nothing: freeze your payment at its current dollar amount instead of letting it fall.
Getting out faster
Freezing your payment at its current dollar amount is the first fix; the next lever is the rate. Check the true monthly cost with the card interest calculator, see your full timeline options in the card payoff calculator, and if you’re juggling several cards, let the snowball vs. avalanche calculator order the payoffs. Damaged credit does not rule out rate relief; see debt consolidation with bad credit.
Frequently asked questions
Does paying only the minimum hurt my credit score?
Paying the minimum on time counts as paying as agreed, so no late marks. But the slowly-shrinking balance keeps your utilization high, which does weigh on your score — see how much with the utilization calculator.
What is a typical minimum payment formula?
Common formulas: a flat 2%–3% of the balance, or interest + 1% of the balance, with a dollar floor around $25–$40. Your cardholder agreement states yours exactly — the calculator above lets you match it.
Is it ever OK to pay just the minimum?
As a short-term bridge in a cash crunch, yes — it protects your payment history. As a strategy, the numbers above are the answer.