💳 Credit Card Payoff Calculator
See how long minimum payments really take — and what a fixed payment saves you.
Why Minimum Payments Cost So Much
Minimum payments are typically a small percentage of your balance, so as the balance shrinks, the required payment shrinks too — a smaller and smaller amount goes toward principal while interest keeps compounding. A fixed payment (paying the same amount every month regardless of the shrinking minimum) clears the balance dramatically faster and saves substantial interest.
Frequently Asked Questions
Why does paying only the minimum take so long?
Minimum payments shrink as your balance shrinks, so a shrinking amount goes toward principal each month
while interest keeps compounding — this "minimum payment trap" can stretch payoff out for decades.
Guide: understanding your result
- Interest accrues on the balance every day, so paying more than the minimum shortens payoff dramatically.
- By law your statement must show how long paying only the minimum would take.
- A payment that does not exceed the monthly interest never pays the balance off.
Worked example
A $6,000 balance at 22.9% APR accrues about $114.50 of interest in the first month. A typical starting minimum (1% of balance plus interest) is $174.50; paying that same amount every month takes 4 yr 9 mo and $3,855 in interest.
Payoff time for a $6,000 balance at 22.9% APR
| Fixed monthly payment | Time to pay off | Total interest |
|---|---|---|
| $150 | 6 yr 5 mo | $5,435 |
| $200 | 3 yr 9 mo | $2,991 |
| $300 | 2 yr 2 mo | $1,630 |
| $500 | 1 yr 2 mo | $880 |
Common mistakes to avoid
- Making new purchases on the card while paying it down.
- Overlooking balance-transfer fees (often 3–5%) when comparing offers.
Official sources
Examples are calculated live from the same data the calculator uses and are for education only — they are not financial, tax or investment advice.
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