Credit Card Minimum Payment Trap
How long minimum payments take to pay off a balance.
Paying just the minimum
Never paid off
Interest paid: $58,733
Most US issuers require the greater of 1 to 3 percent of balance or about $35. Paying minimum on a 25 percent APR card on a $5,000 balance can take 25+ years and cost more in interest than the original balance.
About
Enter balance, APR, and minimum payment formula. The tool simulates month by month and shows how many years it takes to pay off, total interest paid, and what an extra monthly payment would do.
How to use
- Enter balance and APR.
- Set minimum percent and floor.
- Try adding extra to see the savings.
FAQ
Why does paying minimum cost so much?+
On a 25 percent APR card, most of your minimum is interest. The principal barely shrinks. Adding even $50 extra a month can cut years off the payoff.