Estimate how long it will take to pay off your credit card balance by only making minimum payments.
Estimated Months to Pay Off:
62 months
Total Interest Paid:
$550
Total Amount Paid:
$1550
The credit card minimum payment is typically the greater of a percentage of your outstanding balance or a fixed flat amount.
The formula for calculating the minimum payment is: Minimum Payment = MAX(Minimum Payment Percentage * Current Balance, Minimum Flat Payment Amount)
Minimum Payment = MAX(Minimum Payment Percentage * Current Balance, Minimum Flat Payment Amount)
Let's consider an example with the following values:
It is the smallest amount you must pay each billing cycle to keep your account in good standing and avoid late fees.
It's typically the greater of a percentage of your outstanding balance (e.g., 1-3%) or a flat minimum dollar amount, often including accrued interest.
Paying only the minimum can significantly extend your payoff time and drastically increase the total interest paid over the life of the debt.
Yes, a portion of your minimum payment typically goes towards covering the interest accrued on your balance, with the remainder reducing the principal.
