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Minimum Payment Cost

The minimum payment is designed to keep you paying.

The minimum payment trap is structural: issuers set it at about 1% of your balance plus that month's interest, so as the balance shrinks, the payment shrinks — and the debt stretches toward two decades. This calculator simulates the minimum-only path month by month, then shows the single most powerful fix: freeze your payment at today's amount and watch years and thousands of dollars of interest fall off.

Why people use this

Cardholders use it the month they realize the balance has not moved in a year: the simulation shows exactly where the payments went and the one change — freezing the payment — that ends it. It is the math behind the warning box on every statement.

How it works

  1. Enter your card balance, APR, and the minimum payment floor (typically $25).
  2. The simulator runs the issuer's formula — 1% of balance plus interest — month by month until the debt dies.
  3. Then it reruns with your payment fixed at today's minimum, plus any extra you can add.
  4. Compare years, total interest, and the exact savings from refusing to let the payment shrink.

Common questions

How long does paying only the minimum take?

Far longer than anyone expects. A $5,000 balance at 22% APR with a typical 1%-plus-interest minimum takes 227 months — 18.9 years — and costs $7,964 in interest, more than 1.5× the original balance. Your statement is required by the CARD Act to show this timeline; check it.

What is the fastest cheap fix?

Freeze the payment. Fix your payment at today's minimum instead of letting it shrink: that same $5,000 at 22% dies in 58 months instead of 227, saving $4,842 in interest — without paying a single dollar more than you paid this month. Every extra dollar on top shortens it further.

Why does the minimum payment shrink over time?

Because it is a percentage of the remaining balance (typically 1%) plus that month's interest, with a small floor like $25. A shrinking payment keeps principal reduction crawling — the issuer collects interest for years longer. It is legal, disclosed, and entirely designed around the hope that you never do this math.

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