Minimum Payment Calculator – Estimate Your Credit Card’s Monthly Payment

Our free minimum payment calculator helps you understand your
credit card minimum payment and how issuers determine it.
The minimum payment isn’t a fixed number—it varies depending on your bank’s rules,
such as 2% of your balance, or 1% plus interest and fees, with a small-dollar minimum (e.g., $25).

Use this tool to calculate minimum payment on a credit card
and see how much you’re required to pay each month.
By knowing the formula, you’ll see why paying only the minimum can be costly
and how paying more reduces your balance faster.

Credit Card Minimum Payment Calculator

Estimate your minimum payment based on common issuer rules. Choose a rule, enter your balance and APR, and see the required payment and this cycle’s interest.

See how your minimum payment is calculated each month—and why paying more than the minimum helps you pay off debt faster.

How Is the Minimum Payment on a Credit Card Calculated?

Credit card issuers use different formulas to determine your monthly minimum.
While policies vary, most follow one of these methods:

• 2% of balance, with a floor (e.g., $25 minimum).
• 1% of balance + monthly interest, also with a floor amount.
• Interest + fixed amount (e.g., $35 per month).

A simplified formula looks like this:

Minimum Payment ≈ max(% of balance, floor) OR (% of balance + interest)


Minimum Payment Rules by Major Issuers

These examples are for illustration only—your issuer’s formula may vary. Always check your credit card statement
for the exact minimum payment rules.

How to Calculate Minimum Payment on a Credit Card (Step-by-Step)

While our minimum payment calculator gives you instant results,
here’s how to calculate minimum payment on a credit card manually.
Most banks follow a few basic steps:

1. Track your balance – note your statement balance or daily balance average.
2. Calculate interest for the cycle – APR ÷ 365 × Average Daily Balance × days.
3. Apply the issuer’s rule – e.g., 2% of balance OR 1% + interest.
4. Compare with the minimum floor – usually $25–$35, whichever is greater.

Examples You Can Verify

These are only estimates. Always check your credit card statement for the exact minimum payment calculation.
Paying just the minimum keeps your account current, but paying more reduces debt and saves interest.

Minimum Payment Calculator by Issuer

Every bank publishes its own minimum payment formula, usually in your credit card statement
or in the Schumer Box at account opening. Our minimum payment calculator helps you estimate,
but always confirm with your issuer’s official disclosures.

Discover Minimum Payment Calculator

Discover typically requires the greater of $35 or 2% of your balance.
For example, a $2,000 balance may show a minimum of around $40.
You’ll find this clearly displayed in your monthly statement under “Minimum Payment Due.”

Chase Minimum Payment Calculator

Chase often uses the formula 1% of balance + interest + fees, or $25 minimum.
On a $3,000 balance at 26.99% APR, the minimum could be about $90.
Chase includes this breakdown in the Schumer Box and on each statement.

Credit Union & Other Banks

Many credit unions and regional banks apply simpler rules, such as 2% of balance with a $25 floor.
While this keeps the minimum smaller, it can stretch repayment timelines.
Always check your statement’s “Minimum Payment Calculation” section for exact terms.

Why Paying Only the Minimum Is Expensive

Making only the minimum payment keeps your account current, but it also means
interest continues to build through daily compounding.
A balance that seems manageable today can take years to repay and cost thousands in interest.
This is where a credit card payment calculator becomes a valuable tool—it shows how small changes in your monthly payments
impact your payoff timeline.

Smart Ways to Manage Your Payments

• Always pay more than the minimum – even $50 extra can shorten repayment dramatically.
• Try bi-weekly payments – splitting into two smaller payments cuts down compounding interest.
• Consider a balance transfer credit card – many offer 0% APR for 12–18 months with a small fee.
• Look into a personal loan – a lower fixed interest rate can consolidate debt and provide predictable payments.

Use our free credit card interest calculator monthly payment or this
minimum payment calculator to see how paying more than the minimum
helps you save money and get debt-free faster.

Credit Card Minimum Payment FAQs

Conclusion: Use Our Free Minimum Payment Calculator Wisely

Our free credit card minimum payment calculator is designed to give you a clear picture of how issuers set your
monthly obligation—and why stopping at the minimum often costs far more in the long run.
Minimums are useful to stay current, but they are also structured to keep balances—and interest—building over time.

For example, banks may extend your payoff timeline by lowering the required percentage (say, from 2% to 1% of balance).
While this gives you “breathing room,” it comes at the cost of higher total interest over years.
Smart cardholders flip the equation: pay more now, save thousands later.
Even paying an extra $50–$100 per month can cut years off repayment.
Use this minimum payment calculator to test different scenarios and find the sweet spot that works for your budget.

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Whether you’re just starting out, rebuilding, or looking to save on interest,
our tools—including this free minimum payment calculator—help you make smarter credit decisions.