Credit Card Minimum Payment Calculator (2023)

This credit card minimum payment calculator figures how much interest you more instructions

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Is Your Credit Card Costing You Too Much?

Whether you're paying off existing debt or considering using a credit card to finance a new purchase, you may be able to save hundreds---even thousands---by taking a minute to shop for the best credit card for your situation.

Visit our partner, Cardratings, to compare balance transfer credit cards which offer 0% intro APRs for 18 months or more on transferred balances. Likewise, if you're considering financing a new purchase, see the top 0% intro APR credit cards offering 12 months or more of interest-free financing.

See The List Here →

Need longer than two years to pay off an existing debt or a new purchase? A fixed-payment personal loan may charge less interest than a credit card. See our list of the best personal loans for debt consolidation.

(Video) How Are Credit Card Minimum Payments Calculated? – Credit Card Insider

How Much Interest Will You Pay If You Only Make The Minimum Credit Card Payment?

Making minimum payments on credit cards? It's time to pay more, and this Credit Card Minimum Payment Calculator provides ample motivation.

(Video) Credit Card Minimum Payments Explained

Credit card bills show the total amountyou owe, and the minimum payment due. Banks offer you two choices – either pay the full amount, or pay only the required minimum amount before the due date. Obviously, you can always pay any amount in between. If you fail to pay at least the minimum amount due, you will be charged late payment fees.

Related: 5 Financial Planning Mistakes That Cost You Big-Time (and what to do instead!) Explained in 5 Free Video Lessons

Paying the minimum payment required will result in interest charges, and it will keep debt hanging over your head for years. This minimum payment calculator reveals not only how much interest you will pay, but the total number of payments, number of years until your debt is paid off, foregone interest earnings, and your total estimated opportunity cost.

How Minimum Credit Card Payments Are Applied

Banks apply minimum payments to the balance and interest in a variety of ways. Typically, when making minimum payments, almost all the money goes toward interest incurred and only a tiny fraction goes toward the balance.

(Video) How to calculate credit card interest

Beyond that, any amount you pay over the minimum due is normally applied to the balance with the highest annual percentage rate and then to balances with lower annual percentage rates.

Making minimum payments can ultimately result in paying over double the original balance – especially when you consider the total estimated opportunity cost. Cardholders making minimum payments and actively using their credit cards are very unlikely to pay off their balances.

Quickly Eliminate Credit Card Debt

Below are a number of things you can do to quickly eliminate credit card debt:

  • Stop spending with credit cards –If you stop using credit cards, you will eventually pay off your balances; albeit very slowly when only making minimum payments.
  • Pay more than the minimum due – You will be surprised how fast your credit card balances drop once you start paying more than the minimum.
  • Reduce annual interest rates – Transfer credit card balances to other credit cards that offer zero percent balance transfer rates or ask your credit card company for a better deal.

Remember: The higher your interest rates and the less you pay every month, the more you'll end up paying in interest.

Responsible Credit Card Use

Be responsible! Stick to these rules, and you'll build your credit while avoiding debt:

(Video) How to calculate your Minimum Payment on credit card, loan, line & mortgage [FUNDING GYM]

  • Always pay off your balance every month (this applies only after you pay off your credit card debt, until then, focus on paying down debt).
  • Only charge what you'll be able to pay at the end of the month (start a budget to ensure overspending never occurs).
  • Revisit the Credit Card Minimum Payment Calculator when you're tempted to just make minimum payments – is it really worth the cost?

Related: Why you need a wealth plan, not a financial plan.

Final Thoughts

This minimum credit card payment calculator is a motivational tool designed to steer you away from making minimum payments thus choosing to pay more instead. Making minimum payments has many disadvantages:

  • It keeps you in debt longer – think years and years.
  • It causes you to pay more interest – not only interest, but usually high interest.
  • It prevents you from investing – interest paid is money that's never invested.
  • It adds to your stress level – as if life isn't tough enough, debt increases anxiety and fatigue.

Rethink your spending. Don't fall into the minimum payment trap – be smart and use credit cards responsibly. This credit card minimum payment calculator can only give you the motivation – you have to apply the lessons learned. I hope you do.

Credit Card Minimum Payment Calculator Terms & Definitions

  • Balance Owed – The amount of money owed on a credit card.
  • Annual Interest Rate – The percentage applied to your credit card purchases that were not paid in full each month.
  • Minimum Percent Payment – The minimum percentage that must be paid – usually found in your credit card disclosure statement.
  • Minimum Dollar Payment – The minimum amount required by your credit card company to be paid before due date (typically applies if minimum percent payment is lower than this amount).
  • Total Interest Paid – The total amount you pay for interest for using your credit card.
  • Total Number of Payments Made – The total number of payments you need make to pay off your credit card balance given the variables.
  • Years Until Debt is Paid Off – This is the number of years it will take you to pay off your credit card debt.
  • Forgone Interest Earnings – This is the interest you could have earned if you would have invested your money instead of paying the credit card company (assumes a 7% return).
  • Total Estimated Opportunity Cost – The sum of the total interest paid and the foregone interest earnings – what your overall opportunity and interest costs are as a result of debt.
  • Balance Transfer – The process of transferring your credit card balance to another credit card.
  • Balance Transfer Rate – Interest charged to the outstanding balance of your old credit card that is transferred to your new credit card.

RelatedCredit Card CalculatorsFor Debt Payoff

  • Credit Card Comparison Calculator: Which credit card is the best deal?
  • Debt Snowball Calculator: How fast can the rollover method get me out of debt and how much will I save?
  • Credit Card Interest Calculator: How much of my credit card payment is interest and how much is principal?
  • Credit Card Payoff Calculator: How long until I pay off my credit card debt using a variety of payment strategies? Includes printable amortization schedule.
  • Credit Card Payment Calculator: Which repayment strategy will cost the least and get me out of debt the fastest?
  • Debt Payoff Calculator: How much must I pay each month to be out of debt by any selected date?
  • Debt Consolidation Calculator: How much will I save by consolidating my debts into one loan versus paying them individually?
  • Debt Reduction Calculator (With Amortization Schedule): How fast can I get out debt and how much will I save by adding a fixed amount to each monthly payment?
  • Debt Repayment Calculator: How fast can I get out debt and how much will I save by adding a one-time additional payment to principal?
  • Debt Calculator: How long will it take to get out using my current payment plan?

Compare Top Credit Card Offers

The Financial Mentor partners with Cardratings to show you relevant credit card offers. If you're looking to save money on interest or find a higher-value rewards card, check out today's top card offers now:

  • 0% APR Credit Cards
  • Balance Transfer Credit Cards
  • Cash Back Credit Cards
  • Travel Rewards Credit Cards
  • For Business Credit Cards
  • For Fair/Average Credit Credit Cards
  • Browse All Cards

Financial Mentor has partnered with CardRatings for our coverage of credit card products. Financial Mentor and CardRatings may receive a commission from card issuers. Opinions, reviews, analyses & recommendations are the author’s alone, and have not been reviewed, endorsed or approved by any of these entities.

(Video) Calculating credit card Interest and Monthly Payment


How to calculate what your minimum credit card payment will be? ›

Percentage + interest + fees

Suppose your balance (before interest and fees) is $10,000 and you've accrued $160 in interest and $38 in late fees. If your issuer calculates your minimum as 1% of the balance plus interest and fees, you'd have a minimum payment of $298.

What is the minimum payment on a credit card with $2000? ›

What is the minimum payment on a $2,000 credit card balance?
IssuerStandard Minimum Payment
Credit One$100
U.S. Bank$30
6 more rows

What is the minimum payment on a $5000 credit card balance? ›

The minimum payment on a $5,000 credit card balance is at least $50, plus any fees, interest, and past-due amounts, if applicable. If you were late making a payment for the previous billing period, the credit card company may also add a late fee on top of your standard minimum payment.

What is 30% of $300 credit limit? ›

You should try to spend $90 or less on a credit card with a $300 limit, then pay the bill in full by the due date. The rule of thumb is to keep your credit utilization ratio below 30%, and credit utilization is calculated by dividing your statement balance by your credit limit and multiplying by 100.

What's the minimum payment on a $15000 credit card? ›

The hardest way, or impossible way, to pay off $15,000 in credit card debt, or any amount, is by only making minimum payments every month. A minimum payment of 3% a month on $15,000 worth of debt means 227 months (almost 19 years) of payments, starting at $450 a month.

What is the approximate minimum payment for a card with a 1000 balance? ›

Methods of Calculating

Let's say your balance is $1,000 and your annual percentage rate (APR) is 24%. Your minimum payment would be 1%—$10—plus your monthly finance charge—$20—for a total minimum payment of $30.

What happens if you pay more than your minimum each month? ›

You'll incur less interest

Every dollar you pay over the minimum reduces your actual debt, which reduces the amount of interest charged. So even if you can't pay off your balance in full, it's to your benefit to pay more than the minimum.

What is a good minimum payment on a credit card? ›

The minimum payment on a credit card is the lowest amount of money the cardholder can pay each billing cycle to keep the account's status “current” rather than “late.” A credit card minimum payment is often $20 to $35 or 1% to 3% of the card balance, whichever is greater.

How much of $1 500 credit card limit should I use? ›

But if you're looking at credit card utilization to improve your credit score, aim to charge no more than 30% of your credit limit in any statement period. If you have a high credit utilization ratio it means you're close to maxing out your credit cards — and it's likely to hurt your credit score.

What is the minimum payment on a $7000 credit card? ›

The Minimum Payment

Example: Your card issuer requires you to pay 3% of your outstanding loan balance. You owe $7,000 on your credit card. The minimum payment is 3% of $7,000, or $210.

Is it better to pay your credit card in full or leave a balance? ›

Carrying a balance does not help your credit score, so it's always best to pay your balance in full each month. The impact of not paying in full each month depends on how large of a balance you're carrying compared to your credit limit.

Is 5000 a lot of credit card debt? ›

Lots of people have credit card debt, and the average balance in the U.S. is $6,194. About 52% of Americans owe $2,500 or less on their credit cards. If you're looking at $5,000 or higher, you should really get motivated to knock out that debt quickly. The sooner you do, the less money you'll lose to interest.

How much of a $1,500 credit line should I use? ›

Try to keep your overall credit use to about 30% of your overall credit limit, if not lower. Extend your overall credit availability by applying for additional lines of credit, but don't apply for too many at once.

What is a respectable credit limit? ›

A good credit limit is above $30,000, as that is the average credit card limit, according to Experian. To get a credit limit this high, you typically need an excellent credit score, a high income and little to no existing debt.

What credit limit is considered high? ›

A high-limit credit card typically comes with a credit line between $5,000 to $10,000 (and some even go beyond $10,000). You're more likely to have a higher credit limit if you have good or excellent credit.

How to calculate credit card limit? ›

Most companies check your credit report and gross annual income level to determine your credit limit. Factors that issuers are likely to consider include your repayment history, the length of your credit history, and the number of credit accounts on your report. The underwriting process varies from company to company.

How are minimum payment calculated on 0% card? ›

Editorial and user-generated content is not provided, reviewed or endorsed by any company. The minimum payment on a 0% APR credit card is usually either a fixed amount or 1% of your statement balance, whichever is greater. Just note that minimum payment is calculated differently by each issuer.

How to calculate minimum payment on credit card Amex? ›

The American Express minimum payment is the highest of:
  1. The interest charged on your statement, plus 1% of your new balance (excluding any overlimit amount, penalty fees, interest charges, or other plan balances).
  2. 2% of the new balance, excluding any overlimit amount, penalty fees, or other balances.
Sep 23, 2022


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