Minimum Payment Math: Why Balances Linger

Card issuers often set the minimum as a small percent of the balance (e.g., 1–3%) or a fixed floor (e.g., $25), whichever is greater.

Because interest accrues daily, a low minimum barely dents principal—so balances can linger for years.

Rounding a $238 minimum to $275 can cut months off the timeline. Your average daily balance falls faster, which reduces the interest charged the next cycle.

Use our calculator to visualize how a $25–$50 bump changes payoff month and total interest.

Splitting your payment (e.g., half on payday and half mid‑cycle) reduces average daily balance. The total dollars paid are the same, but interest drops.

Set calendar reminders so the mid‑cycle payment becomes a routine.