Question 1

How It Works

Accepted Answer

Enter your balance and APR, and the calculator computes your minimum payment using standard issuer formulas (typically 1-3% of balance or a fixed floor). It then projects how long payoff takes at minimum payments only, how much total interest you'll pay, and contrasts this with fixed payment scenarios so you can see exactly what the minimum payment trap costs you.

Question 2

How are minimum payments calculated?

Accepted Answer

Most credit card issuers calculate minimums as the greater of: a percentage of your balance (typically 1-3%) or a fixed dollar amount (usually $25-$35). Some also add any fees and accrued interest on top. As your balance drops, the minimum payment decreases too, which is why payoff takes so long — you're paying less and less over time while interest keeps accruing.

Question 3

How much more does it cost to only pay the minimum?

Accepted Answer

On a $10,000 credit card balance at 22% APR, minimum payments (2% of balance) would take about 37 years to pay off and cost over $19,000 in interest — nearly double the original balance. Paying a fixed $300/month instead takes about 4 years and costs roughly $4,400 in interest. The difference is staggering.

Question 4

What should I do if I can only afford minimum payments right now?

Accepted Answer

First, make sure you're making at least the minimum on all accounts to avoid late fees and credit damage. Then look for ways to free up even $20-$50 extra per month for your highest-rate debt. Consider a balance transfer to 0% APR, negotiate lower rates with your issuers, or explore debt relief options if your total debt exceeds 40% of your annual income.

Strategy	Payment	Time	Interest	Total Paid
Minimum Only	$160 (declining)	30+ yr	∞	∞
2x Minimum	$320/mo (fixed)	2 yr 11 mo	$3,200	$11,200
3x Minimum	$480/mo (fixed)	1 yr 9 mo	$2,080	$10,080

Minimum Payment Calculator

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Matthew Collins