How much does paying just the credit card minimum really cost?
The worst financial trap of the average consumer: paying just the minimum on a credit card. Payoff takes 25-30 years and you'll pay more in interest than the original balance.
You enter the card balance, annual rate, and pick a mode: fixed payment, target payoff period, or "what if I pay only the minimum?".
The tool gives concrete numbers: months to payoff, total interest, total amount you'll repay. Plus a stark comparison: how many years of debt-free life and how much money you save by paying more than the minimum.
How to use it
- Enter the card balance and annual rate (APR): usually shown on your statement (US: 18-26%, EU: 8-18% typically).
- Pick a mode: Fixed payment (I pay $X per month, how long?), Target period (I want this gone in N months, what payment?), or Minimum only (drastic trap simulation).
- Fill in the mode-specific values: amount, months, or % of balance.
- Below the result you'll see Your plan vs "minimum-only" scenario, the dramatic comparison that shows how much you really save by paying more.
- The chart shows the balance shrinking (or growing, if your payment is too low).
When this is useful
Five common scenarios:
- "I have $8,000 on my card, how long will it take?". Enter the balance, APR, and the amount you can realistically pay. Get a concrete answer: 16 months, 28 months, 4 years.
- "I want this debt gone in 2 years". Target period mode. The tool computes the required fixed payment. Sometimes it turns out to be $600 instead of $200, but you know up front, you can plan.
- Show the minimum trap to yourself or a loved one. Minimum-only mode at $5,000 / 22% APR shows 30 years of payoff and $6,500+ in interest. More in interest than the original debt. That's usually enough to start paying more.
- "$25 weekend coffee or $100 extra to the card?". At $5,000 on 22% APR, an extra $100/month cuts payoff from 30 years to 4 years. That's the whole story.
- Evaluate a balance transfer offer. Bank offers 0% APR for 12 months with a 3% fee. Run three steps: cost on the current card, cost on the new one (also here), compare. Often worth it IF you actually pay it off during the promo.
If you have multiple debts (card + loan + mortgage), use the multi-debt payoff calculator instead. It shows the optimal order to attack them.
Questions and answers
Credit cards typically require a minimum of 1-3% of balance plus that month's interest. At 20-22% APR, the principal shrinks very slowly. Most of your payment goes to interest. Concrete example: $5,000 at 22% APR with a 1% plus interest minimum = 30 years of payoff and $6,500 in interest, more than the original debt. Banks profit from this, customers lose.