# Credit Card Calculator

> See how long a credit card balance takes to clear and the interest it costs, paying a fixed amount each month versus only the minimum.

Category: Finance · Applies to: Worldwide · Last updated: 2026-10-29
Interactive calculator: https://calculators.geekmidst.com/calculators/credit-card-calculator

Paying only the minimum keeps the payment small but stretches a balance over many years. Compare it with a fixed monthly payment to see the time and interest you save.

Also called: Credit card payoff calculator, Minimum payment calculator.

## Inputs
- Card balance (default 5000)
- APR (unit %; default 22)
- Your fixed monthly payment (default 200)
- Minimum payment rule (options: Interest + % of balance, % of statement balance; default interest_plus)
- Minimum payment percentage (unit %; default 1)
- Minimum payment floor (default 25; optional)
- Currency

## Results
- Time to pay off with your payment
- Months with your payment
- Interest with your payment
- Time paying only the minimum
- Months paying only the minimum
- Interest paying only the minimum
- First minimum payment
- Interest saved by paying your amount

## Formula

```
Each month: Interest = Balance × APR ÷ 12; Balance = Balance + Interest − Payment.  Fixed payment: n = −ln(1 − B × r ÷ P) ÷ ln(1 + r), rounded up.  Minimum = max(Floor, Interest + p% × Balance) or max(Floor, p% × Statement balance)
```

Where:
- B: starting balance
- r: APR ÷ 12
- P: fixed monthly payment
- p%: minimum payment percentage

## Worked example
1. Monthly rate r = 22% ÷ 12 = 1.8333%; first month’s interest = 5,000 × 0.018333 = 91.67.
2. Paying 200: n = −ln(1 − 5,000 × 0.018333 ÷ 200) ÷ ln(1.018333) = 33.75, so 34 payments and 1,749.88 of interest.
3. Minimum only: the first minimum is 91.67 + 1% × 5,000 = 141.67, and it shrinks as the balance falls.
4. Paid month by month until the floor of 25 takes over, the minimum route takes 230 months and 8,099.77 of interest.

**Result:** Paying $200 a month clears a $5,000 balance at 22% APR in 34 months; paying only the minimum takes over 19 years and costs about $6,350 more in interest.

## What the result means

The minimum payment is designed to keep the account in good standing, not to clear the debt. Any fixed amount above the first minimum shortens the payoff dramatically. If you carry balances on several cards, the Debt Payoff Calculator orders them for you.

## Assumptions and limits
- No new purchases, fees or rate changes.
- Interest is charged monthly at APR ÷ 12 on the balance; card issuers actually use the average daily balance, so real figures differ slightly.
- The minimum is worked out on the balance after that month’s interest is added.
- Promotional rates, late fees and penalty APRs are not modelled.
- Minimum payment rules vary by issuer and country; enter yours.

## Questions

### How do card issuers calculate the minimum payment?

Common rules are a percentage of the balance (often 1–3%) plus that month’s interest, or a flat percentage of the statement balance, with a small fixed floor. The exact rule is in your card agreement.

### Is it better to pay off the card or save?

Card APRs are usually far higher than savings rates, so paying down the card is normally the better return, once you have a small emergency buffer.

## Sources
- [Consumer Financial Protection Bureau](https://www.consumerfinance.gov/)

## Related calculators
- [Debt Payoff Calculator](https://calculators.geekmidst.com/calculators/debt-payoff-calculator)
- [Debt Consolidation Calculator](https://calculators.geekmidst.com/calculators/debt-consolidation-calculator)
- [Repayment Calculator](https://calculators.geekmidst.com/calculators/repayment-calculator)
- [Loan Amortization Calculator](https://calculators.geekmidst.com/calculators/loan-amortization-calculator)

_This calculator gives estimates for planning. It is not financial advice, and lenders’ actual terms, fees and rounding may differ._

Source: GM¹X CalcVerse — https://calculators.geekmidst.com/calculators/credit-card-calculator