A minimum payment is the smallest amount you must pay by your due date to keep your account in good standing and avoid a late fee — typically 1–2% of your balance or a flat floor (often $25–$35), whichever is greater.
Every credit card statement includes a minimum payment due — the floor your issuer requires to consider the account current. Federal law under the Credit CARD Act of 2009 mandates that issuers disclose how long it will take — and how much total interest you will pay — if you make only the minimum payment each month. That disclosure exists for a reason: the math is often alarming.
Most issuers use one of two methods, whichever produces a higher result: (1) a percentage of the statement balance (commonly 1–2%) or (2) a flat dollar floor (commonly $25–$35). Some issuers add any past-due amount or overlimit fees on top. Because the percentage method produces a smaller dollar payment as your balance falls, paying only the minimum means your balance declines very slowly — especially when a high APR is accruing simultaneously.
The CFPB's minimum payment explainer underscores that making only the minimum payment dramatically extends the time to pay off a balance and substantially increases total interest paid. On a $3,000 balance at 20% APR, paying only the $60 minimum (2%) means you would pay thousands in interest before the balance reaches zero — and it would take well over a decade. Paying even two or three times the minimum each month cuts both figures sharply.
Paying the minimum is the right move only when cash flow is genuinely constrained for a short period and you have a concrete plan to resume higher payments. Otherwise, the Federal Reserve's consumer credit data shows credit card APRs among the highest of any consumer loan category — so paying as much above the minimum as your budget allows, and ideally the full statement balance, avoids the most interest.