The Minimum Payment Trap
Credit card minimums (often 2% of balance) are designed to keep you paying for years — sometimes decades. A $5,000 balance at 24.99% APR paid at $200/month takes about 36 months and over $2,100 in interest. Drop to a $125 minimum-style payment and you're looking at 6+ years and interest approaching the size of the original debt.
How to Read Your Result
The calculator applies your card's monthly rate (APR ÷ 12) to the running balance and subtracts your payment each month. If your payment doesn't exceed the monthly interest charge, the balance mathematically never shrinks — the calculator will warn you.
Paying It Off Faster
- Every extra dollar goes to principal. Even $25 more per month cuts months off the timeline.
- 0% balance transfer cards can pause interest for 12–21 months — do the math on the transfer fee (typically 3–5%).
- Avalanche method: if you have multiple cards, pay minimums on all and throw everything extra at the highest-APR card first.