Credit Card Minimum Payment Calculator
Credit Card Minimum Payment Calculator
What happens if you pay only the minimum due on a credit card: how many months it takes, what it costs in interest, and how a fixed payment compares.
Minimum payment
A balance of $1,00,000 at 3.5% a month, minimum 5% or $200, against a fixed $10,000
Two phases: a shrinking percentage, then the floor
- r
- the monthly rate; p the minimum percentage; F the floor
- q
- how much of the balance survives a month while the percentage applies; it must be below 1
- k₁
- the months in the percentage phase: floor(ln(B₀ ÷ T) ÷ −ln q) + 1, with T = F ÷ [p(1 + r)]
- B₁
- the balance when the floor takes over, B₀ × q^k₁; it is then repaid like a loan at F a month, with a smaller last payment. Total months = k₁ + n₂ rounded up.
Worked example
A balance of $1,00,000 at 3.5% a month, minimum 5% or $200, against a fixed $10,000
q = 1.035 × 0.95 = 0.98325: the balance shrinks 1.7% a month while the percentage applies
The floor takes over below T = 200 ÷ (0.05 × 1.035) = $3,864.73
k₁ = floor(ln(1,00,000 ÷ 3864.73) ÷ −ln 0.98325) + 1 = 193 months, leaving $3,838.34
Then $200 a month clears that in 33 months: 226 months (18.8 years), interest $2,03,573
A fixed $10,000 a month clears it in 13 months, with $25,265 of interest
1,00,000 at 3.5% a month, paying only the minimum
| Minimum rule | Months | Years | Total interest |
|---|---|---|---|
| 4% or $200 | 527 | 43.9 | $5,26,479 |
| 5% or $100 | 267 | 22.2 | $2,06,264 |
| 5% or $200 | 226 | 18.8 | $2,03,573 |
| 5% or $500 | 172 | 14.3 | $1,95,499 |
| 10% or $200 | 68 | 5.7 | $50,575 |
Why the minimum due takes so long
The minimum due is set to keep your account in good standing, not to clear the debt. It is usually a small percentage of the statement balance, so as the balance falls the minimum falls with it, and the debt shrinks by only a fixed fraction each month — at 3.5% a month and a 5% minimum, about 1.7%. That is a geometric decline that never reaches zero on its own. What finally ends it is the floor: once the percentage would ask for less than the floor amount, you pay the floor, and the rest is repaid like a small loan.
The page solves both phases exactly, so the month count is not an estimate. On the example $1,00,000 takes 226 months — 18.8 years — and costs $2,03,573 in interest, more than the balance itself. After five years of minimum payments $36,294 is still owed. A fixed $10,000 a month clears the same balance in 13 months.
There is no single legal minimum in India. The Reserve Bank’s card rules require issuers to set the minimum so that it causes no negative amortisation — it must at least cover the interest and charges, so paying it never makes the balance grow — and bar them from charging interest on unpaid charges, levies and taxes. Within that, each issuer sets its own rule in its Most Important Terms and Conditions; 5% of the total outstanding with a floor of a few hundred rupees is common, and EMIs, fees and GST are added on top. That is why the rule is an input here.
This is a best case. It assumes no new spending and a monthly interest charge, whereas cards charge daily on the average daily balance, charge interest on new purchases once any balance is carried, and in India add GST to interest. Paying the minimum on time does avoid late fees and protects your credit record, but it is the most expensive way to repay. The credit card payoff calculator shows how fast a fixed payment works. This is arithmetic on the figures you enter, not financial advice.
Frequently asked questions
How long does it take to pay off a credit card paying only the minimum?
On $1,00,000 at 3.5% a month, with a minimum of 5% or $200, 226 months — 18.8 years — and $2,03,573 of interest, assuming no new spending.
What is the minimum amount due on an Indian credit card?
Each issuer sets it in its terms; 5% of the total outstanding with a small floor, plus any EMIs, fees and GST, is common. RBI rules require it to be set so that the balance does not grow when you pay it.
Does paying the minimum stop interest?
No. Interest is charged on the whole unpaid balance, and on most cards new purchases also attract interest from the day they are made while a balance is carried.
Is the month count exact?
For this model, yes: the percentage phase is a geometric decline and the floor phase an annuity, both solved exactly and checked against a month-by-month count. Your card’s daily interest and fees will make the real figure a little worse.
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References
- Reserve Bank of India. Master Direction – Credit Card and Debit Card – Issuance and Conduct Directions, 2022. RBI/2022-23/92, DoR.AUT.REC.No.27/24.01.041/2022-23, 21 April 2022 (as amended). Para 9(b): card-issuers must quote APRs, ensure there is no negative amortisation, and not capitalise unpaid charges, levies or taxes for charging interest.
- Examples of issuers’ published Most Important Terms and Conditions (MITC), consulted September 2026: Federal Bank credit cards MITC (minimum amount due 5% of the total amount due, minimum Rs 100, plus EMIs, GST and fees; interest by the average daily balance method; GST on interest and charges; rates revised from 10 January 2026) and SBI Card MITC (minimum amount due 5% of total outstanding, minimum Rs 200, plus taxes, EMIs and any over-limit amount). Cited for the convention only; each issuer sets its own terms.
- United States. Credit Card Accountability Responsibility and Disclosure Act of 2009, Pub. L. 111-24, s. 201: statements must warn how long the balance takes to repay making only minimum payments.
- Brealey RA, Myers SC, Allen F. Principles of Corporate Finance. McGraw-Hill. The present value of an annuity, from which the level-payment loan formula and its inverse for the number of payments follow.