cashstr.app
Eye-Opening Calculator

Minimum Payment Calculator

Discover the true cost of only making minimum payments. The results may shock you — and inspire you to do something about it.

Did you know?

On a £3,000 credit card debt at 22% APR, paying only the minimum could take over 27 years to pay off and cost you more than £5,000 in interest alone. Use this calculator to see your personal numbers.

Your Credit Card Details
Enter your debt and see the real cost

Most UK credit cards charge 1–3% of balance. Check your statement.

Enter a fixed amount to compare against minimum payments

Enter your details to see the true cost of minimum payments

The results may surprise you

Ready to Escape the Minimum Payment Trap?

cashstr.app shows you exactly where every pound goes, helps you find room to pay more, and tracks your progress automatically.

The Hidden Cost of Minimum Payments

Most people don't realise how expensive minimum payments are. Credit card companies set minimum payments low on purpose — it maximises the interest you pay them over time.

How Minimum Payments Work

Most UK credit cards calculate the minimum payment as either:

  • A percentage of your outstanding balance (typically 1–3%)
  • A fixed minimum amount (usually £5–£25)
  • Whichever is greater

As your balance reduces, so does your minimum payment — which means you pay less and less each month, dragging out the debt for decades.

Real Example: £3,000 at 22% APR

If you owe £3,000 at 22% APR and make 2% minimum payments:

  • Your first payment would be around £60
  • It would take approximately 27+ years to pay off
  • You'd pay over £5,000 in interest — more than the original debt

But if you paid a fixed £150 per month instead:

  • You'd be debt-free in just 2 years and 2 months
  • Total interest: approximately £750
  • Saving: over £4,250

How to Escape the Minimum Payment Trap

  • Set a fixed payment: Never let your payment drop below your starting minimum
  • Pay any extra you can: Even £10-20 more per month makes a big difference
  • Consider a 0% balance transfer: More of your payment goes to principal
  • Track your progress: Seeing your balance drop keeps you motivated

Frequently Asked Questions

What is the minimum payment on a credit card?

The minimum payment is the lowest amount you must pay each month to keep your account in good standing. It's typically 1-3% of your balance or a fixed minimum (e.g. £25), whichever is greater.

Is it bad to only pay the minimum?

Yes — while it won't hurt your credit score immediately, only paying the minimum means you'll pay far more in interest over time and remain in debt for much longer than necessary.

What happens if I pay more than the minimum?

Any payment above the minimum reduces your principal balance faster, which reduces future interest charges. Even small extra payments compound significantly over time.