Calculate your credit card's minimum payment based on common formulas.
Your Estimated Minimum Payment:
$0.00
Understanding Your Credit Card Minimum Payment
When you receive your credit card statement, it will list a minimum payment amount. This is the smallest amount you are legally required to pay by the due date to keep your account in good standing and avoid late fees. However, paying only the minimum can be a very costly strategy in the long run due to accumulating interest charges.
Credit card companies typically calculate the minimum payment using a formula that involves a percentage of your current balance and a fixed fee. The exact formula can vary between issuers, but a common approach is:
Percentage of Balance: A small percentage (often between 1% and 5%) of your current outstanding balance.
Fixed Minimum Fee: A set dollar amount (e.g., $25 or $35) that acts as a floor for the minimum payment, ensuring a certain amount is paid regardless of a low balance.
Calculation:Fixed Minimum Fee
The credit card issuer will then take the higher of these two amounts (the percentage of balance or the fixed fee) to determine your minimum payment. Sometimes, a percentage of the interest charged for the billing cycle is also factored in, but the core calculation usually revolves around the balance percentage and the fixed fee.
Why You Shouldn't Rely on the Minimum Payment:
High Interest Costs: Credit cards often have high Annual Percentage Rates (APRs). Paying only the minimum means most of your payment goes towards interest, not the principal balance. This can lead to paying multiples of your original purchase price over time.
Longer Debt Payoff Period: It can take years, even decades, to pay off a significant balance if you consistently make only the minimum payments.
Impact on Credit Score: While paying the minimum avoids late fees, a high credit utilization ratio (keeping a large balance relative to your credit limit) can negatively impact your credit score.
Best Practice: Aim to pay more than the minimum whenever possible. Paying your balance in full each month is the ideal strategy to avoid interest charges altogether. If you cannot pay in full, paying double or triple the minimum, or using a debt payoff plan, can significantly reduce the time and money spent on interest.
Use this calculator to get an estimate of your minimum payment, but remember that consistently paying down your debt is the most effective way to manage credit cards.
function calculateMinimumPayment() {
var currentBalance = parseFloat(document.getElementById("currentBalance").value);
var annualInterestRate = parseFloat(document.getElementById("annualInterestRate").value);
var minimumPaymentPercentage = parseFloat(document.getElementById("minimumPaymentPercentage").value);
var fixedMinimumFee = parseFloat(document.getElementById("fixedMinimumFee").value);
var minimumPaymentDisplay = document.getElementById("minimumPaymentDisplay");
// Input validation
if (isNaN(currentBalance) || currentBalance < 0 ||
isNaN(annualInterestRate) || annualInterestRate < 0 ||
isNaN(minimumPaymentPercentage) || minimumPaymentPercentage < 0 ||
isNaN(fixedMinimumFee) || fixedMinimumFee currentBalance) {
calculatedMinimumPayment = currentBalance;
}
// Format the result
var formattedMinimumPayment = calculatedMinimumPayment.toLocaleString('en-US', {
style: 'currency',
currency: 'USD'
});
minimumPaymentDisplay.textContent = formattedMinimumPayment;
minimumPaymentDisplay.style.color = "#28a745"; // Success green
}