Credit Card Minimum Payment Trap Calculator
Minimum payments are designed to keep you in debt as long as possible. This calculator simulates your balance month by month under a minimum-payment plan versus a fixed higher payment, revealing the true cost in time and interest.
About this calculator
See how long it really takes to pay off a credit card balance making only minimum payments, and how much interest you'll pay compared to paying more each month.
Frequently Asked Questions
Why do minimum payments take so long?
Minimum payments are typically calculated as a small percentage of the balance, so as the balance shrinks, the payment shrinks too, dragging out payoff and maximizing interest paid to the lender.
What happens if the balance never goes to zero?
If your minimum payment barely covers or fails to cover the monthly interest, the balance can stay flat or grow, which this calculator flags by capping the projection.
How much can a fixed payment save me?
Paying a consistent, higher amount each month rather than the shrinking minimum can cut years off your payoff time and save substantial interest, as shown in the comparison breakdown.