Minimum Payment on a $500 Credit Card Balance
Find the minimum monthly payment on a small $500 credit card balance at 18% APR.
How to use this tool
- Enter your statement balance.
- Enter the purchase APR and the issuer's minimum-percent rule (often 1%–3%).
- Enter the fixed floor amount (commonly $25 or $35).
- Read the minimum payment and how much of it is interest versus principal.
Even on a $500 balance, minimum payments are mostly interest — use this calculator to see how much you actually owe each month.
Frequently asked questions
- Why does paying the minimum barely reduce my balance?
- Because most of the minimum can be interest. When the percent component roughly equals the monthly interest, almost no principal is paid, so the balance lingers for years.
- How do issuers set the minimum payment?
- Most use the greater of a percent of the balance (often 1%–3%) or a fixed floor such as $25–$35. Some add fees and accrued interest on top; check your cardholder agreement.
- Is paying only the minimum bad?
- It keeps the account current but maximizes interest paid and stretches payoff over many years. Paying more than the minimum dramatically cuts total interest and time to zero.