What is a credit card minimum payment?

The minimum payment is the smallest amount you are required to pay on your credit card by a certain date to avoid penalty fees. It usually constitutes 3-5% of the balance, but not less than the accrued interest.

How is the minimum payment calculated?

Minimum payment = max(Balance × Minimum_payment_percentage, Accrued_interest + 1%_of_principal)

Why pay more than the minimum?

By paying only minimum payments, you could be paying off debt for decades and overpaying several times the original amount due to interest charges.