● Money & small business
How long to pay off a credit card with minimum payments (and what keeping the first payment fixed saves)
Credit card minimum payments shrink as your balance shrinks, which is why paying only the minimum can take decades. A common formula (card issuers' formulas differ; check your statement) is 1% of the balance plus that month's interest, with a floor of $25. The tables below use it, with interest charged monthly at APR ÷ 12 and no new purchases. The fix is simple: keep paying the amount of your first minimum payment every month, even as the minimum drops. Try your own card in the minimum payment calculator, or plan several cards at once with the debt payoff calculator.
Minimum payments vs keeping the first payment fixed
| Balance | APR | First minimum | Minimum only: time | Minimum only: interest | First payment kept: time | First payment kept: interest |
|---|---|---|---|---|---|---|
| $2,000 | 20% | $53.33 | 11 yr 3 mo | $2,317 | 5 yr | $1,165 |
| $2,000 | 24% | $60.00 | 11 yr 11 mo | $2,887 | 4 yr 8 mo | $1,329 |
| $2,000 | 29% | $68.33 | 12 yr 8 mo | $3,620 | 4 yr 4 mo | $1,516 |
| $5,000 | 20% | $133.33 | 18 yr 10 mo | $7,317 | 5 yr | $2,912 |
| $5,000 | 24% | $150.00 | 19 yr 6 mo | $8,887 | 4 yr 8 mo | $3,322 |
| $5,000 | 29% | $170.83 | 20 yr 3 mo | $10,870 | 4 yr 4 mo | $3,791 |
| $10,000 | 20% | $266.67 | 24 yr 7 mo | $15,650 | 5 yr | $5,824 |
| $10,000 | 24% | $300.00 | 25 yr 3 mo | $18,887 | 4 yr 8 mo | $6,644 |
| $10,000 | 29% | $341.67 | 26 yr | $22,953 | 4 yr 4 mo | $7,581 |
| $20,000 | 20% | $533.33 | 30 yr 4 mo | $32,317 | 5 yr | $11,648 |
| $20,000 | 24% | $600.00 | 31 yr | $38,887 | 4 yr 8 mo | $13,288 |
| $20,000 | 29% | $683.33 | 31 yr 9 mo | $47,119 | 4 yr 4 mo | $15,162 |
What the numbers say
- At the minimum, the rate changes the payoff time by only about 17 months between 20% and 29%, but it changes the interest a lot. Because the formula always covers the interest, you pay down 1% of the balance a month whatever the APR; the rate decides how much interest rides along.
- Bigger balances take much longer at the minimum: $2,000 at 24% takes 11 years 11 months, $20,000 takes 31 years, because the $25 floor only speeds up the very end.
- Keeping the first payment fixed pays off any balance in about 4 to 5 years (52 to 60 months here) and cuts the interest by half to two thirds (50% to 68% here): $10,000 at 24% goes from $18,887 to $6,644.
- A card with a 2% or 3% minimum formula (some issuers use "a percentage of the balance, including interest") pays off at a different pace; plug your issuer's numbers into the fixed-payment payoff table for a quick estimate.
Every row was computed twice, by two separately written month-by-month loops (one in exact decimal arithmetic), with 0 differences in months or interest. Assumes no new purchases, fees or rate changes. Not financial advice.