Credit card minimum payment calculator
Paying only the minimum keeps the account in good standing but stretches repayment over many years.
Time to clear at the minimum
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How this calculator works
- Each month, add the interest to the balance and subtract the minimum payment.
- The minimum is recalculated on the reducing balance, so it falls over time and repayment slows.
- Repeat until the balance reaches zero, counting the months and the interest.
- Run the same calculation with a fixed payment to compare.
Formula: Minimum payment = the greater of a percentage of the balance or a fixed floor amount
Frequently asked questions
Why does paying the minimum take so long?
The minimum is a percentage of the balance, so as the balance falls the minimum falls too. That means less of each payment goes to principal over time, and the balance clears slowly.
What happens if I pay more than the minimum?
Every extra dollar goes straight to the principal, which reduces the interest charged in later months. A fixed payment well above the minimum can cut years off the payoff time.
Should I use a balance transfer instead?
A low promotional rate can help, but only if you clear the balance before the promotion ends and do not run up the old card again. Compare the total cost, including any transfer fee.
Sources
- Financial Consumer Agency of Canada — Financial Consumer Agency of Canada
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