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What's a credit card minimum repayment?

The minimum monthly repayment on a credit card is the lowest amount you have to pay to meet your credit agreement.

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How does credit card interest work?

Knowing how your credit card interest is calculated and when it's charged can help you manage your repayements and avoid paying unnecessary interest.

How to make the most of your credit cards interest free period

Taking advantage of your card’s interest-free period can help you smooth your cash flow.

The minimum repayment is the smallest amount you need to pay each month to keep your credit card in good standing.
Paying more than the minimum can help you stay in control, reduce interest over time and pay off your balance sooner.

Paying your minimum monthly amount by the due date allows you to avoid late fees, but you will still pay interest on the balance that you owe.

How much is the minimum repayment?

The minimum repayment will differ depending on your credit card provider and the amount you owe. For CommBank credit cards (that are not business credit cards or the Interest-free Low Fee credit card), the minimum repayment amount is the greater of:

Any amount you owe that exceeds your credit limit (excluding any amount by which your credit limit was exceeded in a previous statement period, and which remains unpaid);
2% of the closing balance, rounded down to the nearest dollar; or
$25

If you have a CommBank Business Card (other than a rewards card):

The threshold amount is $75 (rather than $25); and
The minimum payment percentage is 2.5% (rather than 2%)

If you have a CommBank Interest-free Low Fee credit card:

You’ll have the flexibility to choose how much you repay each month – typically from a minimum of $40¹ up to your total balance.

If you owe less than $40, the total amount owing will be your repayment.

If you have spent more than your credit limit during the statement period shown on your statement of account - the amount you've spent over your credit limit, plus $40.

Should you repay more than the minimum repayment?

If you can, it’s best to repay as much of the amount owing as possible. This will minimise the amount of interest you’re charged, and help you clear the balance sooner.

Paying only the minimum repayment amount each month means you'll usually incur interest over time. This will significantly increase your costs, and will extend the time it takes to pay off your total.

Most credit cards come with an interest free period on purchases. Which means by paying the total amount owing each month, you'll usually be able to avoid paying any interest on your purchases.

Note that if you've made a cash advance transaction during the statement period, you're likely to still be charged interest on the cash withdrawn, in addition to the cash advance fee. Cash advances are blocked on certain types of credit cards.

Interest-free Low Fee Credit Card

Here’s our simplest credit card yet. Say goodbye to interest, late fees and hidden charges – Just a $10 monthly fee.

How to add to your repayments

If you’re finding it difficult to pay more than your minimum repayment each month, one of the first actions you can take is to reduce your spending on your credit card.

A budget can help you assess whether there are any areas of your life where you feel you're overspending and could reduce your spending.

As part of your budget, try to set aside an amount to repay your credit card balance each month, and a date by which you'd like to make sure you've repaid the balance completely.

Choosing the right CommBank credit card

Choosing the right card depends on how you use it. Whether you're looking for a low-fee card for simple everyday purchases or a reward card, understanding how they work can help you make a confident choice.

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Important notice

From 1 February 2027, we're making changes to our Credit Card interest rates, fees and charges.

Find out more Dismiss

Things you should know

Disclaimer: Commonwealth Bank of Australia ABN 48 123 123 124 and Australian credit licence 234945.

This article provides general information of an educational nature only. It does not have regard to the financial situation or needs of any reader and must not be relied upon as personal financial product advice. The views expressed by contributors are their own and don’t necessarily reflect the views of CBA. As the information has been provided without considering your objectives, financial situation or needs, you should, before acting on this information, consider what is appropriate for your circumstances, and where appropriate, consider the relevant Target Market Determination, Product Disclosure Statement and Terms and Conditions available on our website. You should also consider whether seeking independent professional legal, tax and financial advice is necessary. Every effort has been taken to ensure the information was correct as at the time of publishing but it may be subject to change. No part of the editorial contents may be reproduced or copied in any form without the prior permission and acknowledgement of CBA.

¹ If you owe $40 or more that month, your minimum payment will be $40. Otherwise, your minimum payment will be the amount you owe.
If you have spent more than your credit limit during the statement period shown on your statement of account (that is, excluding any amount you spent over your credit limit during statement periods shown on your previous statement of accounts we've given you) - the amount you've spent over your credit limit, plus $40.