Why is making minimum payments so costly?

Minimum payments keep balances high for years and maximize interest paid. A $5,000 balance at 20% APR with 2% minimum payments can take 30+ years to pay off and cost over $10,000 in interest.

Minimum Payment Calculator

See how long it takes to pay off a balance making only minimum payments — and how much interest you'll pay.

This tool runs in your browser. None of your data is saved or sold.

Credit card balance ($)

APR (%)

Minimum payment (%)

Fixed payment alternative ($)

About This Calculator

Most credit card minimum payments are calculated as a percentage of your balance (typically 1–2%), which means the payment shrinks as the balance shrinks — extending your debt for decades. This calculator shows the true cost of making only minimum payments versus committing to a fixed amount.

Estimates only — not financial, tax, legal, or investment advice. Verify important results with a qualified professional before making decisions.

each month: pay = max($25, balance × min%); balance = balance × (1 + APR/12) − payment; count months until balance < $1; total interest (minimums) = sum of monthly interest charges; fixed-payment months: same iterative logic at constant payment