Credit Card Minimum Payment Calculator
Most credit card providers set a minimum payment of around 2% of the outstanding balance (or £25, whichever is higher). Because the minimum falls as the balance falls, it can take decades to clear a debt this way, and you can end up paying far more in interest than the original amount you borrowed.
Your credit card details
Simulation assumes no new spending on the card and that the minimum payment drops in line with the balance.
Related: Credit Card Payoff · Debt Avalanche
How the credit card minimum payment calculator works
Credit card minimum payments are typically set at around 1–3% of the outstanding balance, or a fixed floor (commonly £25), whichever is higher. Because the minimum falls as the balance falls, you end up making smaller and smaller payments over time — but because interest continues to accrue on almost the full balance, progress in reducing the debt is painfully slow. This calculator simulates this month by month so you can see exactly how long minimum payments would take and how much interest you will pay in total.
The comparison table shows what happens when you switch to a fixed monthly payment. Even committing to pay a fixed amount slightly above the starting minimum can reduce the payoff time dramatically. For example, on a £3,000 balance at 22% APR, paying a fixed £100 per month instead of the shrinking minimum can save years of payments and hundreds of pounds in interest.
Under FCA rules, UK credit card providers are required to contact customers who have been making minimum payments for 18 months and offer options to repay faster. If you are struggling with credit card debt, free, confidential help is available from organisations such as StepChange, the Money and Pensions Service, and Citizens Advice.
Frequently asked questions
Why should I pay more than the minimum payment?
Paying only the minimum keeps your balance high for a very long time, meaning interest continues to accumulate on almost the full amount you borrowed. By increasing your monthly payment even modestly — say by £20 or £30 — you reduce the principal faster, which in turn reduces the interest charged each month. Over the life of the debt, paying more than the minimum can save hundreds or even thousands of pounds.
How is the minimum payment calculated?
Most UK credit card providers set the minimum payment as the greater of a fixed floor (commonly £25) or a percentage of the outstanding balance (typically 1–3%). Some also add the monthly interest charge and any fees to ensure the balance does not increase. Because the minimum falls as the balance falls, the payments shrink over time, which is why clearing the debt takes so long.
What happens if I only pay the minimum payment?
If you only ever pay the minimum, you will eventually pay off the debt but it can take many years — sometimes decades — depending on the balance and interest rate. You will also pay far more in interest than the original amount borrowed. Missing even the minimum payment triggers late fees, a negative mark on your credit report, and potentially a penalty interest rate from your provider.
How long does it take to pay off a credit card with minimum payments?
The time depends on your balance and APR, but it is commonly much longer than people expect. A balance of £3,000 at a typical UK APR of around 21–22% using minimum payments of 2% (minimum £25) can take over 20 years to clear and cost more in interest than the original debt. Using this calculator with your own figures will show you the exact timeline and interest cost.