Minimum only
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Minimum Credit Card Payment Calculator
Privacy note: calculations run in your browser; the values you enter are not submitted.
Inputs
Currency: £
Policy: % of balance
Results
Estimated next minimum
£0.00
Months to payoff
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Minimum-only payoff date
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Total interest (projection)
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Total paid
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Minimum + extra
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- Time
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- Total paid
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Enter your details to compare savings.
Starting balance
Projected interest
Payment schedule
| Payment month | Opening balance | Minimum due | Extra | Payment | Interest | Principal | Fees | Closing balance |
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Methodology and assumptions
We project one statement cycle at a time. This is an estimate, not a reproduction of any issuer’s billing system.
- Interest: APR ÷ 12 gives a monthly rate, applied to the opening balance. Issuers commonly use a daily periodic rate and average daily balance, so statements can differ.
- Order: interest, selected fees, and any continuing new charges are added before the payment. The chosen issuer formula then determines the minimum due.
- Fees: monthly and late fees repeat monthly; the annual fee is added in month 1 and every 12 months. Past-due amounts and penalty APR changes are excluded.
- Payments: the higher-payment scenario pays the minimum plus extra, or at least the minimum when a fixed amount is selected. Final payments are capped at the amount owed.
- Multiple APRs: purchases, balance transfers, and cash advances can have different APRs. Use a blended APR only as a simplifying estimate; this model does not allocate payments among balance types.
Your statement controls. Grace periods, rounding, transaction timing, compounding, minimum floors, promotional rates, and issuer-specific terms can change the result.
Informational only — not financial advice.
Prepared by: Starlight Tools editorial team · Reviewed by: Starlight Tools calculator review · Last updated: 11 July 2026
Method references: your cardholder agreement and monthly statement are the primary sources; APR-to-periodic-rate and minimum-payment conventions follow common consumer credit statement methods.
Understanding Minimum Credit Card Payments
A credit card’s minimum payment is the smallest amount your issuer requires you to pay by the due date to keep the account in good standing. It prevents late fees and penalty actions, but it’s usually designed to be small—so most of your early payments can go toward interest rather than reducing the balance. This section explains how minimums are typically calculated, why payoff can take a long time, and practical ways to reduce interest.
How minimums are commonly set
- Percentage of balance: A flat percentage (often 2–4%) of the statement balance.
- “Greater of” rule: The greater of a small percentage or a fixed pound/dollar amount (e.g., 2% or £25).
- Interest-first effect: Each month, interest is added to your balance; your payment covers interest first, then any remainder reduces principal.
Policies vary by issuer and card. Always check your statement for the exact formula and any fees.
Why paying only the minimum can be costly
Credit card interest is typically accrued from a daily or monthly rate derived from the APR. When balances are high and minimums are low, a large share of your payment services interest. That means principal falls slowly and the repayment timeline stretches, increasing total interest over time.
- Slow principal reduction: Early payments may barely dent the balance.
- Compounding over time: Interest is repeatedly calculated on remaining balances.
- Potential “negative amortisation” risk: If new spending and fees exceed what you pay, your balance can grow rather than shrink.
Simple example
Suppose your statement balance is £1,500 at 24.9% APR (~2.075% per month). A 3% minimum is £45. The first month’s interest is about £31.13 (1,500 × 0.02075), leaving roughly £13.87 to reduce principal. You’re current on payments, but the balance only drops to ~£1,486—illustrating why payoff takes time at minimums.
Improving your payoff timeline
- Pay more than the minimum: Even a small, fixed extra amount each month can significantly cut interest and months to payoff.
- Pause new spending: Temporarily avoiding new charges helps your payments reduce principal faster.
- Consider a lower rate: Balance transfer offers or lower-APR products (if available and suitable) can reduce interest costs.
- Automate and track: Automatic payments help avoid missed due dates and late fees.
This content is informational only and not financial advice. Terms and calculations vary by card and issuer—always review your statement and card agreement.
Minimum payment examples and what results mean
£1,500 at 24.9% APR
With a 3% minimum, the first month’s interest is about £31.13. Only the part of the payment above interest and fees reduces principal.
Minimum-only baseline
Add £25 each month
Use “minimum plus extra” to see exactly how a recurring £25 changes the payoff date, interest, and total paid for your inputs.
Actionable comparison
Read the payoff date
The date is based on your selected first payment date and monthly intervals. It is easier to plan around than a month count alone.
Planning milestone
Check the fixed floor
For “2% or £25, whichever is greater,” the £25 floor often takes over as the balance falls, shortening the final part of repayment.
Issuer wording matters
Watch for a growing balance
If interest, fees, and new spending exceed the payment, payoff is not reached. The calculator flags that result instead of presenting a misleading date.
Negative amortisation
FAQ
How is a credit card minimum payment calculated?
Issuers may use a percentage of the statement balance, a fixed floor, or interest and fees plus a percentage of principal. The exact method appears in your card agreement or statement.
What is a typical minimum payment percentage?
A common range is about 1% to 4% of the balance, often subject to a fixed minimum. Policies vary, so use the formula on your statement.
Why did my minimum payment change?
It can change with your balance, interest, fees, new transactions, past-due amounts, or an issuer policy change.
Does paying the minimum hurt credit?
Paying on time generally avoids a missed-payment mark, but carrying a high balance may affect credit utilization and paying only the minimum usually costs more interest.
What happens if the minimum is less than interest?
The balance may not fall and can grow when interest, fees, and new charges exceed the payment. Check the statement and contact the issuer if this occurs.
Should I pay the minimum or the statement balance?
If affordable, paying the statement balance by the due date generally avoids purchase interest when a grace period applies. The minimum mainly keeps the account from becoming past due.
How much extra should I pay?
Choose an amount you can sustain without missing essentials or other required payments. Test several amounts here to compare payoff dates and interest savings.