Calculator

Minimum payment trap calculator

Card minimums shrink as the balance shrinks, which is what stretches a few thousand dollars across decades. Compare that against any fixed payment you could commit to.

$183First minimum payment
21 yr 4 moMinimum-only payoff
$10,870Interest paid
ApproachPayoff timeInterestTotal paid
Minimum only (interest plus 1%, floor $25)21 yr 4 mo$10,870$17,270
Fixed $250 a month3 years$2,384$8,784

Paying a flat $250 instead of the shrinking minimum saves $8,486 and clears the balance 18 yr 4 mo sooner.

Estimates only. Issuers word the minimum payment rule differently and some use a flat percentage of the balance instead, which is slower still. Promotional and penalty rates change the answer, and no new charges are assumed.

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