Formula
Card agreements often use both a percent and a dollar floor:
Minimum = the larger of (balance × percent) and the floor
If you also enter an APR, the page estimates how long that minimum takes to clear the balance.
Assumptions
- The percent and the floor do not change as the balance falls. This estimate keeps paying the opening minimum.
- No new charges are added.
Worked example
A $3,000 balance with a 2% rule and a $25 floor has a minimum payment of $60.00.
Input definitions
- Percent of balance
- The percent the agreement applies to the balance.
- Minimum floor
- The lowest dollar payment, used when the percent is smaller.
Limitations
This is an estimate, not a loan offer, tax filing, or investment advice. The currency control changes the symbol only.
Questions
Why might the balance not clear?
If the minimum is not larger than a month of interest, the balance does not fall.
Do real minimums shrink?
Often yes, as the balance falls. This page keeps the opening minimum so the interest estimate stays simple.