Credit Card Minimum Payment Calculator: Calculation and Examples
Estimate a card’s minimum payment from a principal percentage, payment floor, and monthly interest.
Understanding the calculation
This model adds a percentage of the balance to estimated monthly interest, compares the result with the payment floor, and caps it at the total owed. It excludes fees, past-due amounts, and new transactions. Your statement and agreement determine the actual required payment.
Credit Card Minimum Payment formula
Minimum = min(balance + interest, max(payment floor, balance × principal percentage ÷ 100 + interest)), where interest = balance × APR ÷ 1,200.
Worked example
For a $5,000 balance at 24% APR, monthly interest is estimated at $100. A 1% principal component adds $50, giving a $150 minimum when the floor is $25.
Assumptions and interpretation
The minimum payment rule is a user-selected estimate. Read the issuer’s agreement and statement for the actual floor, percentage, interest, fees, and past-due amounts. This result covers one payment cycle.
Displayed amounts are rounded; intermediate calculations use unrounded values. Compare the result with the terms and payment schedule in your agreement. For background on the calculation, read the CFPB explanation of credit-card interest.
Frequently asked questions
What happens when the interest rate is zero?
The estimate uses the greater of the principal percentage and payment floor, capped at the card balance.
Why might the actual result differ?
Payment timing, daily interest accrual, contract rounding, fees, and changing rates can differ from the monthly estimate. Check the lender or issuer’s agreement for the method used.
What inputs should I enter?
Use amounts and rates from the relevant agreement, with time periods matching the labels. Enter zero for an optional amount that does not apply.