What is a credit card minimum repayment?

KEY POINTS
- When paying off your credit card, you’ll be required to make the minimum repayment each statement period.
- You can choose to pay above the minimum repayment when paying your credit card bill to pay it off faster.
- Making only the minimum repayment can significantly increase the amount of interest you pay.
What is a credit card minimum repayment?
The minimum repayment on a credit card is the lowest amount you have to pay to meet your credit card agreement. If you don’t pay this amount by the due date, you will typically be charged a late fee.
The minimum repayment amount will differ depending on your credit card provider and your outstanding balance. However, financial institutions typically set the minimum repayment amount at $10 to $25 or 2% of the amount owing, whichever is higher.
What happens if you only make the minimum repayment on your credit card?
By paying the minimum repayment amount of your credit card, you will avoid a late payment fee; however, you will still be charged interest on your outstanding balance. If you only ever make the minimum repayments, you may find that it takes you a long time to repay your credit card debt, as you will continue to be charged interest.
If you are able to pay off your outstanding debt by the due date, you can avoid late payment fees and interest charges. That’s because most credit cards have interest-free periods up to 62 days, depending on the card.
If I make minimum repayments, how much will my credit card debt cost?
In the example below, we’ve calculated the total potential cost if you only make the minimum repayment on your credit card each month. We’ve also calculated how long it could take you to pay off your credit card debt.
These calculations are based on a purchase rate of 17.07% and minimum repayments of $10 or 2% of the amount owing (whichever is greater).As you may see below, making only minimum repayments can end up being costly.
Credit card debt costs using minimum repayments
Amount owed | Time to pay off debt | Total repaid |
---|---|---|
$2,000 | 28 years and 4 months | $6,385.45 |
$5,000 | 42 years and 1 months | $17,333.17 |
$7,000 | 47 years and 1 months | $24,631.68 |
$10,000 | 52 years and 5 months | $35,579.41 |
$15,000 | 58 years and 6 months | $53,825.61 |
Source: www.canstar.com.au – 12/08/2025. Based on personal unsecured credit cards on Canstar’s database with minimum repayment of $10 or 2% (whichever is greater)
As you can see, simply making the minimum repayments can be costly in the long run and it can take you a significant amount of time to pay off your debt. If you can, it’s best to repay as much of your balance as quickly as possible, as this may reduce the amount of interest you are charged and the overall cost of your credit card.
If you are unable to pay off your balance in full each month, consider comparing credit cards to find one with a lower interest rate and low fees. It’s a good idea to always read the Product Disclosure Statement (PDS) and Target Market Determination (TMD) if you are considering a credit card.
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Canstar is an information provider and in giving you product information Canstar is not making any suggestion or recommendation about a particular credit card product. If you decide to apply for a credit card, you will deal directly with a financial institution, and not with Canstar. Rates and product information should be confirmed with the relevant financial institution. For more information, read Canstar’s Financial Services and Credit Guide (FSCG), detailed disclosure, important notes and liability disclaimer. Products displayed above that are not “Sponsored or Promoted” are sorted as referenced in the introductory text and then alphabetically by company. Canstar may receive a fee for referral of leads from these products. See How We Get Paid for further information.
You could also take a closer look at your budget and see if there are any areas you may be able to cut back on and use these savings to pay off your credit card balance. Check out our simple guide to making a budgetmaking a budget.
If you are finding it difficult to meet your repayments, contact your credit card provider and see if you can reach a financial hardship arrangementfinancial hardship arrangement. You can also speak to a financial counsellor for free by calling the National Debt HelplineNational Debt Helpline on 1800 007 007.
This article was reviewed by our Finance Editor Jessica Pridmore before it was updated, as part of our fact-checking process.

Alasdair Duncan is Canstar's Content Editor, specialising in home loans, property and lifestyle topics. He has written more than 500 articles for Canstar and his work is widely referenced by other publishers and media outlets, including Yahoo Finance, The New Daily, The Motley Fool and Sky News. He has featured as a guest author for property website homely.com.au.
In his more than 15 years working in the media, Alasdair has written for a broad range of publications. Before joining Canstar, he was a News Editor at Pedestrian.TV, part of Australia’s leading youth media group. His work has also appeared on ABC News, Junkee, Rolling Stone, Kotaku, the Sydney Star Observer and The Brag. He has a Bachelor of Laws (Honours) and a Bachelor of Arts with a major in Journalism from the University of Queensland.
When he is not writing about finance for Canstar, Alasdair can probably be found at the beach with his two dogs or listening to podcasts about pop music. You can follow Alasdair on LinkedIn.
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