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Credit card minimum payment calculator

Minimum payments shrink as your balance does, which is exactly why they take decades. See the real payoff time, and what fixing your payment at this month's minimum saves.

Minimum payment ruleYour card's minimum payment rule

“2.5% of the balance or £5, whichever is higher” is a common UK rule. Yours is on your statement; some cards use “interest plus 1%” instead, which behaves similarly.

Minimum payments only: cleared in

54y 5m

£3,000 at 24.9% APR, paying only the shrinking minimum each month

  • Interest paid on minimums alone£12,414
  • Fixed £76.56/month clears it in6y 10m
  • Interest on the fixed plan£3,253

Fixing your payment at £76.56 — what the minimum is this month — clears the card 47y 7m sooner and saves £9,161 in interest. The trap is that the minimum shrinks as the balance does; a fixed amount keeps the pressure on.

More than one debt? The debt payoff planner orders them so the same money clears everything fastest.

Common questions

Why do minimum payments take so long to clear a credit card?
Because the minimum is a percentage of the balance, it shrinks every month as the balance falls. Early on most of it is swallowed by interest, and the part that actually repays debt gets smaller and smaller. A typical "2.5% or £5" minimum on a £3,000 balance at 24.9% APR can take over 50 years to clear. The card stays profitable; you stay in debt.
What is the fix if I cannot pay much more?
Fix the amount instead of paying the shrinking minimum. Set a standing order for whatever this month's minimum is and keep paying that same figure every month. It costs nothing extra today, but because the payment no longer shrinks with the balance, it typically clears the card decades sooner and saves thousands in interest.
What are the FCA persistent debt rules?
If you pay more in interest, fees and charges than you repay of the balance over 18 months, the FCA classes you as in "persistent debt". Your provider must contact you at 18 months prompting you to pay more, remind you at 27 months and warn that the card may be suspended, and at 36 months propose ways to repay over a reasonable period, usually 3 to 4 years. If you cannot afford that, they must show forbearance, which can include reducing, waiving or cancelling interest and charges. These rules (FCA CONC 6.7) have applied since 2018.
Would a 0% balance transfer help?
Often, yes. Moving the balance to a 0% balance transfer card stops interest for the promotional period, so every pound you pay reduces the debt. Watch the transfer fee (typically 3 to 5%), keep up the minimums on the new card, and have a plan to clear it before the 0% period ends, or the leftover balance starts charging interest again.
Can the minimum payment ever fail to clear the card at all?
Yes, when the minimum rule is weak relative to the APR. If the monthly interest is as large as the minimum payment, the balance never falls; it can even grow. Card minimums are typically set only just above the interest and charges added each month, so at high APRs the slice that actually repays debt can be tiny. The calculator flags this state when your numbers hit it.
I have several cards. Which should I clear first?
Keep paying every card's minimum, then put everything spare at the card with the highest APR (the "avalanche" method, which is mathematically cheapest) or the smallest balance (the "snowball" method, which gives faster wins). Our debt payoff planner compares both on your actual debts.

Juggling more than one debt? The debt payoff planner orders them so the same money works hardest, and the budget planner helps you find the extra pounds to throw at the balance.