What is the minimum payment on a credit card?
Written byEmily Tye
Updated:Feb 17, 2026
3 min read
Summary
The minimum payment on a credit card is the lowest amount you’re allowed to pay back to your credit card provider each month.
Your minimum payment is calculated based on your outstanding balance.
Paying more than the minimum payment each month reduces the amount of interest you’ll pay.
How is the minimum payment on a credit card calculated?
The minimum payment calculation can vary depending on the credit card provider, but will at least cover the interest charged since your last statement + fees + 1% of your outstanding balance each month.
This is a rule put in place by the Financial Conduct Authority (FCA) to help ensure credit card providers don’t set minimum payments that are so low they don’t even cover the interest being added. This could otherwise keep customers stuck in persistent debt.
At Zable, your minimum payment each month will be the greater of:
£5; or
The total of any interest charged since your last statement + 1% or 2% of your statement balance (excluding interest charges).
How do I find the minimum payment on a credit card?
You’ll be able to see the minimum payment required on your monthly statement. It will tell you the exact amount you owe - you don’t need to work this out yourself.
With Zable, you can check your monthly statement in the Zable App. We also share a recommended payment amount with you, designed to help you pay off your card faster and minimise interest charges.
You can find your recommended payment in the Repay tab of the Zable App.
Does the minimum payment on a credit card change?
Yes, the minimum payment on a credit card changes almost every month. It's not a fixed instalment like a loan; it’s a moving target based on how much you owe each month.
The main reasons your minimum payment fluctuates are:
Your balance is declining as you pay off your debt. Since the minimum payment is calculated as a percentage of your balance, as the balance gets smaller, so does the minimum payment.
You’ve made new purchases which increases your balance, and therefore increases your minimum payment.
If the Bank of England raises interest rates, your credit card provider will likely increase your APR, which can increase your minimum payment.
How do I make a minimum credit card payment?
The best way to ensure you never miss a credit card payment is to set up a direct debit. You can usually choose to automatically pay the minimum payment, a fixed amount, or your full statement balance every month.
The more you pay off each month, the less interest you’ll pay, so if you can afford to, you should pay more than the minimum.
You can also choose to pay manually each month via your mobile app or online banking service.
Should I pay more than the minimum payment on a credit card?
Yes, if you can afford to do so, you should always pay more than the minimum payment each month as this will reduce the amount of interest you pay. Check out the simplified, hypothetical example below.
Balance: £3,000
Interest rate (APR): 24.9%
Minimum payment calculation: Interest + fees + 1% of principal (roughly £90 for the first month and then reducing over time).
Monthly payment | Total interest paid | Time until you clear your balance | |
|---|---|---|---|
Minimum payment | Starting at ~£90 (decreases) | £4,285 | 27 years, 3 months |
Increased fixed payment | £100 | £1,690 | 3 years, 11 months |
Full payment | £3,000 | £0 | 1 month |
As you can see, the more you pay off, the less it costs you in total.
That said, if you’re worried about money, paying the minimum payment may be the right choice for you. You can always choose to make an increased payment when you feel you can afford to do so.
Will I get charged interest if I pay the minimum amount?
Yes, you will almost certainly be charged interest if you only pay the minimum amount. The only exception to this is if you are within a 0% promotional period on your card.
Otherwise, the only way to avoid interest charges entirely is to pay back your full balance at the end of each month. For example, if you spent £500 on your credit card, you would need to pay back all £500 by your next due date.
What happens if I can’t afford my minimum repayments and need to make a late payment?
If you make a late payment, you may be charged a late fee and your credit score could take a hit.
If you anticipate this happening to you, the best thing to do is get in touch so we can see how we can help. Read more about the support we can offer.
You can also seek free help from charities like National Debtline and MoneyHelper.
Finally, you might be interested in credit cards for bad credit, which typically have lower starting limits and may help you to spend within your budget.
This blog is for informational purposes only and does not constitute financial advice. Please speak to a qualified financial adviser before making financial decisions.
