Paying only the minimum on a credit card
A minimum payment is usually a small percentage of the balance plus that month's interest, so it falls every month as the balance falls and each payment removes less than the last. On 3,000 at 22.9% with a 2% minimum, clearing the card takes 112 months — nine years and four months — and costs 2,498.51 in interest, which is 83% of what was borrowed. Freezing the payment at that first minimum of 117.25 instead of letting it fall clears the same balance in 36 months for 1,155.70.
Month by month
| 1 | $117.25 | $57.25 | $60.00 | $2,940.00 |
| 2 | $114.90 | $56.10 | $58.80 | $2,881.20 |
| 3 | $112.60 | $54.98 | $57.62 | $2,823.58 |
| 4 | $110.35 | $53.88 | $56.47 | $2,767.11 |
| 5 | $108.15 | $52.81 | $55.34 | $2,711.77 |
| 6 | $105.99 | $51.75 | $54.24 | $2,657.53 |
| 7 | $103.86 | $50.71 | $53.15 | $2,604.38 |
| 8 | $101.79 | $49.70 | $52.09 | $2,552.29 |
| 9 | $99.76 | $48.71 | $51.05 | $2,501.24 |
| 10 | $97.75 | $47.73 | $50.02 | $2,451.22 |
| 11 | $95.80 | $46.78 | $49.02 | $2,402.20 |
| 12 | $93.88 | $45.84 | $48.04 | $2,354.16 |
An estimate, not financial advice. Figures are illustrative and depend on assumptions listed below. Check anything you plan to act on with a qualified adviser or the provider itself.
The worked example below, drawn. A fixed payment is a straight-ish line down; a percentage minimum is a curve that flattens out.
A percentage minimum shrinks with the balance, so the debt approaches zero rather than reaching it.
The floor underneath the percentage is what eventually clears the card. Without it the schedule runs to the cap.
Freezing the payment at today's minimum, rather than letting it fall, is the cheapest change available and costs nothing in month one.
How it works
The formula
Each month, in this order:
interest = round(balance x apr / 100 / 12)
due = balance + interest
payment = round(what you pay this month)
principal = payment - interest
balance = due - payment
On a fixed payment:
payment = the same amount every month
On the minimum:
payment = max(balance x percent + interest, floor)
The last payment is only what is left, so the
totals reconcile with the schedule.
round = to the nearest minor unit, half up.
What it assumes
- Interest is charged monthly at the APR divided by twelve, which is what a statement shows. Most issuers accrue daily, which differs by a small amount over a multi-year payoff and cannot be reconciled against a statement.
- Nothing further is charged to the card. A single new purchase changes every row below it, and is the commonest reason a real balance does not follow a schedule like this one.
- The minimum is modelled as a percentage of the balance plus that month's interest, floored at a fixed amount. That is a common shape and not a universal one — some issuers use a percentage of the balance alone, and the terms vary by card and by country. Both figures are editable.
- There is no promotional rate, no balance transfer, no fee and no missed payment. Each of those changes the answer materially.
- A payment that does not cover the first month of interest is refused rather than reported, because there is no payoff to report. The balance grows for ever.
- The figures carry no currency symbol on purpose. The arithmetic is the same in pounds, euros or dollars, and the tool follows whichever currency your locale uses.
Common questions
Why does my balance barely move?
Because most of the payment is interest. At 22.9% APR a balance of 3,000 accrues 57.25 in the first month, so a minimum of 117.25 removes 60 from what you owe and the rest services the debt. The statement shows a payment made and a balance almost unchanged, which is accurate and is the mechanism working exactly as designed.
Is it worth paying a little more than the minimum?
Enormously, and far more than the size of the increase suggests. Every extra unit goes entirely against the balance, and the balance is what next month's interest is charged on, so the saving compounds. On this example, paying 150 rather than 100 clears the card in 26 months instead of 45 and costs 814.94 in interest instead of 1,495.48 — 45% less interest for 50% more payment.
Sources
Method written and checked by Tessalor on Jul 31, 2026.
The full method, worked example and every assumption behind this figure are on Credit Card Payoff Calculator.