How this calculator works
The minimum shrinks as the balance shrinks, which is why it takes so long. This follows the card's rule month by month (check your statement for the exact rule), then compares it with keeping the first month's payment fixed until the balance is gone.
- Each month: interest = balance × APR ÷ 12; the minimum = your card's rule (for example interest + 1% of the balance), but never less than the card's floor and never more than what is owed.
- The balance falls by the minimum minus the interest, the next minimum is recalculated on the smaller balance, and this repeats until the balance reaches zero.
- The fixed-payment comparison keeps paying the first month's minimum and uses the standard payoff formula.
Worked example
With these inputs: card balance $5,000; apr 24.99%; how your card sets the minimum Interest + 1% of balance; lowest minimum the card allows $35.
The result is paying only the minimum 16 years 11 months, with interest paid $8,824.08 and first minimum payment $154.13. Holding the payment at the first minimum instead of letting it shrink saves $5,405.69 and 12 years 4 months.
Why paying the minimum takes so long
A common rule is interest plus 1% of the balance. On a $5,000 balance at 24.99% that's about $154 in the first month — but only $50 of it reduces the balance. Next month the minimum is recalculated on a slightly smaller balance, so it is a little lower, and so on. The payment falls almost as fast as the debt, which is why the payoff date stretches into decades.
Your statement is required by federal law to show how long paying only the minimum would take and the payment that would clear the balance in three years. This calculator does the same maths with your own numbers and lets you compare the rules card issuers commonly use.
The simplest fix: freeze the payment
You don't need a bigger payment to break the cycle — just stop letting it shrink. Pay the first month's minimum every month as a fixed amount and every dollar the minimum would have dropped goes to the balance instead. Add it to your bills as a fixed monthly payment so it doesn't drift down with the statement.
If you can pay more, the Credit Card Payoff Calculator shows how many months each extra $50 removes, and the Balance Transfer Calculator checks whether moving the balance to a 0% offer would cut the interest further.
Sources
Frequently asked questions
How long does it take to pay off a credit card with minimum payments?
Often decades. In the example — $5,000 at 24.99% with a minimum of interest + 1% and a $35 floor — paying only the minimum takes 16 years 11 months and costs $8,824.08 in interest.
What happens if I keep paying the first minimum payment?
In the same example the first minimum is about $154. Paying that every month clears the card in 4 years 7 months with $3,418.39 of interest — saving $5,405.69 and more than 12 years.
How is a credit card minimum payment calculated?
Each issuer sets its own rule, and it's in your cardholder agreement and on your statement. Common versions are interest plus 1% of the balance, or a flat 2% to 3% of the balance, with a dollar floor such as $25 or $35.
Why does the calculator say the balance never pays off?
Under a flat-percentage rule, a high APR can mean the minimum is smaller than the monthly interest. Then the balance grows every month. Check your card's rule or raise the floor; a fixed payment above the interest always ends the debt.
Does paying only the minimum hurt my credit?
Paying at least the minimum on time keeps the account in good standing. A high balance relative to your limit can still weigh on your score, so paying more than the minimum usually helps both your score and your interest bill.