Short answer
On $5,000 at 24.99% APR, a minimum of 1% of the balance plus interest takes 236 months (19 yr 8 mo) and costs about $9,278 in interest. A fixed $250 a month clears it in 27 months.
1. Common minimum formulas
Many cards use a percentage of the balance, sometimes plus interest and fees, with a dollar floor. Your statement lists the exact rule.
| Formula | First payment | Time to pay off | Total interest | Total paid |
|---|---|---|---|---|
| 1% of balance + interest (min $25) | $154.12 | 236 months (19 yr 8 mo) | $9,278 | $14,278 |
| 2.5% of balance (min $25) | $125.00 | 472 months (39 yr 4 mo) | $21,123 | $26,123 |
| 3% of balance (min $35) | $150.00 | 216 months (18 yr 0 mo) | $9,546 | $14,546 |
2. Fixed payments on the same balance
| Monthly payment | Time to pay off | Total interest | Total paid |
|---|---|---|---|
| $150 | 58 months (4 yr 10 mo) | $3,622 | $8,622 |
| $200 | 36 months (3 yr 0 mo) | $2,135 | $7,135 |
| $250 | 27 months (2 yr 3 mo) | $1,535 | $6,535 |
| $350 | 18 months (1 yr 6 mo) | $997 | $5,997 |
| $500 | 12 months (1 yr 0 mo) | $666 | $5,666 |
3. Why the minimum is a trap
Early minimum payments are mostly interest. On $5,000 at 24.99%, the first month adds about $104 of interest, so a $154 minimum cuts the balance by only about $50.
4. Statement warning
Card statements carry a federal minimum payment warning that shows how long minimum payments would take and what fixed payment clears the balance in 36 months.
5. Frequently asked questions
What is a credit card minimum payment?expand_more
The smallest payment due to keep the account in good standing, often a percentage of the balance plus interest and fees.
How long to pay off $5,000 on minimums?expand_more
About 19 yr 8 mo at 24.99% with a 1% plus interest minimum.
Does paying more than the minimum help?expand_more
Yes. A fixed $250 a month clears $5,000 at 24.99% in about 27 months.
Where do I find my minimum formula?expand_more
On your statement or card agreement.
6. Sources
- menu_bookCFPB: What is a minimum payment?
- menu_bookCFPB: Credit cards
- menu_bookFederal Reserve: Consumer credit