About This Calculator
Credit card minimum payments are designed to keep an account in good standing, not to pay off the balance in any reasonable time. Because the minimum is usually recalculated from your current balance every month, it shrinks right alongside the balance — which sounds harmless but actually stretches a payoff that could take a few years into one that can take well over a decade, while interest quietly outpaces the shrinking principal payments. This tool simulates that month by month, shows you the real time and interest cost, and compares it against what happens if you simply pick a fixed amount and pay that same amount every month instead of letting it shrink. Everything is calculated locally in your browser.
How Minimums Are Calculated
Percent + interestA smaller percentage of the balance — often around 1% — plus that month's accrued interest. This is one of the two most common methods among major issuers.
Flat percentageA larger percentage of the balance alone — typically 2% to 4% — with interest and fees effectively rolled into that larger share.
The dollar floorMost issuers also set a fixed minimum amount, commonly $25 to $35 — you pay whichever is greater, the calculated percentage or the floor.
Why it's a trapAs your balance falls, the calculated minimum falls too — so the amount going toward principal keeps shrinking, and interest (calculated on a slowly-falling balance) keeps eating up a growing share of each payment.
The simplest fixPick a payment amount — even close to your very first minimum — and keep paying that same fixed amount every month instead of letting it shrink. This one change is usually enough to cut years and thousands off the payoff.
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