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NationalDebtFacts

What the minimum payment really costs

The minimum payment is designed to be affordable, not to clear the balance. Enter a balance and a rate to see how long it takes, what it costs, and how much a little extra changes both.

US average 20.94% in 2026Q2

Paying the minimum clears $6,000 in 20 years 6 months and costs $9,429 in interest.

First minimum payment$164.70interest plus 1% of the balance, at least $25
With $100 more a month2 years 6 months18 years sooner
Interest saved$7,726over the life of the balance
$0$3,000$6,0000y10y21y
  • Minimum payment only
  • With $100 more a month
Payment plans compared
PlanMonthlyDebt-free inInterestSaved
Minimum payment only$164.7020 years 6 months$9,429
Minimum + $25 a month$189.703 years 11 months$2,804$6,626
Minimum + $50 a month$214.703 years 3 months$2,300$7,129
Minimum + $100 a month$264.702 years 6 months$1,703$7,726
Minimum + $200 a month$364.701 year 8 months$1,135$8,295

The minimum payment falls as the balance falls, which is what stretches it out. The comparison rows keep the first minimum payment fixed and add the extra on top. No new spending on the card, no fees, no promotional rate.

Educational estimate, not financial advice. Everything is calculated in your browser — nothing you enter is sent anywhere or saved.

How this calculator works

Interest is charged monthly at APR ÷ 12 on the remaining balance, then the payment is applied. The minimum is interest plus 1% of the balance, with a $25 floor. No new spending, no fees, no promotional rate.

The comparison rows keep the first minimum payment fixed and add $25, $50, $100 or $200 on top, which is what actually ends a balance: a payment that does not shrink as the balance does.

Common questions

How long does it take to pay off a card with minimum payments?

At 20.94%, a $6,000 balance takes 20 years 6 months and costs $9,429 in interest. The minimum shrinks with the balance, which is what stretches it out.

What does $100 more a month do?

The same balance is gone in 2 years 6 months instead of 20 years 6 months, and the interest falls from $9,429 to $1,703.

How is the minimum payment worked out?

As interest for the month plus 1% of the balance, never less than $25 — the rule most US issuers use. Your own card may differ; the rate and the payment are both yours to change in the calculator. The starting rate is the US average of 20.94% in 2026Q2.

Why do credit cards cost so much more than other debt?

Card debt is unsecured: there is no house or car behind it. That, plus the option to pay almost nothing each month, is why the rate is several times a mortgage rate, and why interest on a card compounds against you every single month.

Sources

All figures are fetched from the publishers above when this site is built; your browser does not contact them. This site is independent and is not affiliated with, sponsored or endorsed by the Federal Reserve System, any Federal Reserve Bank or any government agency. Nothing here is financial advice.