Minimum Payment
The smallest amount you must pay on a credit card each month to stay current.
What does minimum payment mean?
Minimums are usually a small percentage of the balance, designed to keep you in debt for years. Because they shrink as the balance falls, paying only the minimum is the slowest, most expensive way to clear a card.
Put it to use
Credit Card Minimum Payment Calculator Use this calculator to determine how long it will take you to payoff your credit cards if you only make the minimum payments. Credit Card Pay Off Calculator Use this calculator to see what it will take to pay off your credit card balance, and what you can change to meet your repayment goals.
Related terms
Minimum Payment — frequently asked
What happens if I only pay the minimum on my credit card?
Interest keeps compounding on the large remaining balance, so payoff can stretch for years and cost far more than you borrowed. Paying even a bit above the minimum dramatically shortens the timeline and cuts total interest.
How is the minimum payment calculated?
Card issuers usually charge a small percentage of the balance (often 1%–3%) plus that month’s interest and fees, with a floor like $25–$35. Because it is mostly interest early on, the balance barely moves.