Minimum Payment Calculator
Making only the minimum payment is the slowest, most expensive way out of credit card debt. See exactly how many years it takes and how much interest the minimum-payment trap costs — then compare it to a fixed higher payment. Free, no signup.
Most issuers set the minimum at the greater of $25 or 2% of the balance. Your first minimum payment would be about $100 — and it shrinks every month as the balance falls, which is exactly why minimum-only payoff takes so long.
Paying Only the Minimum
Time to pay off
40y 6m
486 monthly payments
Total interest
$18,500
Total paid
$23,500
Paying a fixed $200/month instead
pays off in 2y 9m
and saves $16,978 in interest (453 months sooner).
Frequently asked questions
How is the minimum payment calculated?
Most issuers set the minimum at the greater of a flat dollar amount (often $25–$35) or a small percentage of the balance (typically 1–3%). This calculator defaults to the greater of $25 or 2% of the balance, and you can change both. Because the percentage is applied to a shrinking balance, the minimum falls every month.
Why does paying the minimum take so long?
The minimum is designed to barely stay ahead of the interest. Early on, most of your payment goes to interest and only a little to principal. As the balance falls, the minimum falls with it, so progress slows to a crawl. A $5,000 balance at 20% APR paid at a 2%/$25 minimum can take 40+ years and cost more in interest than the original balance.
What is the minimum payment trap?
It’s the cycle where paying only the minimum keeps you in debt for decades while interest piles up. At high APRs the minimum can be nearly equal to the monthly interest, so the balance barely moves. This calculator caps the simulation at 50 years and flags cases where the balance never realistically clears.
How much faster is a fixed payment?
Dramatically faster. Because a fixed payment doesn’t shrink as the balance falls, more of each dollar attacks the principal every month. The calculator lets you enter a fixed monthly payment for comparison — it usually cuts payoff from decades to a few years and saves thousands in interest.
Should I always pay more than the minimum?
Whenever you can. Paying even a little above the minimum breaks the shrinking-payment cycle and sends the extra straight to principal, which reduces every future interest charge. If you’re carrying a high-APR balance, a fixed higher payment or a 0% balance transfer are the two most effective ways to escape the trap.