Tools · Credit Card Payoff

The minimum payment
is a 27-year trap.

Drop in your balance and APR. Move the extra-payment slider. Watch the balance-over-time chart split into two lines. This tool makes visceral what the math has always said: paying only the minimum is the single most expensive financial habit in American personal finance.

This page covers US-specific accounts and tax law. Outside the US? The priority order is the same, the account names differ (ISA in the UK, TFSA/RRSP in Canada, Super in Australia, etc.).

Standard issuer formula: monthly interest plus 1–2% of current balance (floored at $25).

MINIMUM ONLY
Months to payoff
–
Total interest paid
$0
WITH EXTRA PAYMENT
Months to payoff
–
Total interest paid
$0
MONEY SAVED BY EXTRA PAYMENT
$0

THE HIDDEN COST OF MINIMUMS

Credit card issuers structure minimum payments around 1–3% of balance, with a floor around $25. The math: as you pay down the balance, the minimum also drops, which drops the principal component, which extends the payoff timeline. A $5,000 balance at 22% APR paying only the minimum takes roughly 27 years and costs more than twice the original balance in interest. Any extra payment attacks principal and breaks the compounding loop in your favor.

What this tool assumes
  • Interest accrues monthly at APR/12; fees and late charges are not modeled.
  • Paying only the minimum often extends payoff to 15+ years on high-APR cards.

Not financial advice. Simulation caps at 600 months (50 years) to prevent runaway loops. Minimum floored at $25 or 1% of original balance, whichever is greater.

Related

→ Debt Types Explained → Debt Payoff Strategy (avalanche vs snowball) → Credit Score Basics → Budgeting
HOW THIS IS CALCULATED

This tool runs entirely in your browser — no data is sent to any server. All formulas use standard financial math. Verify the methodology or inspect the source code in your browser's dev tools.