Every major US credit card issuer uses one of two formulas to calculate your minimum payment. Understanding which formula your card uses — and why — is the first step to understanding how much your debt is really costing you.
Minimum = max($25–$35, Balance × Percentage)The most common and simplest method. The issuer takes a fixed percentage of your total statement balance — typically 2% — and applies a floor amount so very small balances still have a meaningful minimum.
| Balance | 2% Calculation | Floor | Actual Minimum | Note |
|---|---|---|---|---|
| $200 | $4.00 | $25 | $25 | Floor applies |
| $500 | $10.00 | $25 | $25 | Floor applies |
| $1,000 | $20.00 | $25 | $25 | Floor applies |
| $1,500 | $30.00 | $25 | $30.00 | % higher than floor |
| $4,000 | $80.00 | $25 | $80.00 | % applies |
| $10,000 | $200.00 | $25 | $200.00 | % applies |
Typical issuers using this formula: Citi (2%), Discover (2%), Bank of America (2%)
Minimum = max($25–$35, (Balance × APR/12) + (Balance × 1%))This formula always covers the full interest charge first, then adds 1% of the principal. This ensures your balance actually decreases every month — something that isn’t guaranteed with the flat percentage method at high APRs.
Typical issuers using this formula: Chase (1% of principal + interest), Capital One (1% of principal + interest), American Express (1% of balance + interest), Wells Fargo (1% of principal + interest + fees)
Source: individual cardholder agreements, April 2026. Always check your own card agreement as terms may vary by card product.
| Issuer | Formula Type | Percentage | Floor Amount | Notes |
|---|---|---|---|---|
| Chase | interest + 1% of principal | 1% of principal | $35 | Interest charges + 1% of statement balance; $35 floor |
| Citi | 2% flat | 2% of balance | $10 | Greater of 2% of total balance OR $10 |
| American Express | interest + 1% of balance | 1% of balance | $35 | All interest + 1% of statement balance; $35 floor |
| Discover | 2% flat | 2% of balance | $20 | Greater of 2% of total balance OR $20 |
| Capital One | interest + 1% of principal | 1% of principal | $25 | Interest + 1% of statement balance; $25 floor |
| Wells Fargo | interest + 1% of principal + fees | 1% of principal | $25 | 1% of principal + all interest + fees; $25 floor |
| Bank of America | 2% flat | 2% of balance | $35 | 2% of statement balance OR $35, whichever is greater |
Under 12 CFR Part 1026 (implementing the Credit CARD Act of 2009), every issuer must disclose the minimum payment calculation method in the cardmember agreement and include a “Minimum Payment Warning” on every monthly statement. That warning shows exactly how long minimum-only payments will take and what payment clears the balance in 36 months. The law requires this transparency — most cardholders never read it.