Paying only the minimum on a credit card keeps the account in good standing, but it can turn a few months of debt into many years. This calculator compares two paths: paying just the minimum, or paying the same fixed amount every month.
Enter your balance, your card’s APR and what you can afford each month. You’ll see how long each path takes and how much interest you pay along the way.
Paying a fixed amount
Paying only the minimum
Every issuer sets its own minimum payment formula. US statements include a minimum payment warning that shows how long payoff takes at the minimum: use it to fine-tune the fields. Assumes no new purchases and no late fees.
Why minimum payments take so long
A minimum payment is designed to cover the month’s interest plus a very small slice of the balance. As the balance falls, so does the minimum, and the debt stretches out for years. A fixed payment, even one only a little above today’s minimum, keeps the pace steady and cuts the payoff time dramatically.
How to use the result
Try a few fixed payments until you find one that fits your budget and clears the debt in a time frame you can live with. Every extra dollar a month lowers total interest. With more than one card, a common approach is to pay the minimum on all of them and send any extra money to the card with the highest APR.
If your APR is high, compare options such as a balance transfer or a lower-rate personal loan. Our credit card and loan guides explain the real cost and requirements of each.
Frequently asked questions
What is APR on a credit card?
It’s the yearly interest rate charged on any balance you don’t pay in full. The calculator divides it by 12 to get the monthly rate. You’ll find it on your statement and in your cardholder agreement.
How is the minimum payment calculated?
It depends on the issuer. A common formula is about 1% of the balance plus that month’s interest, with a floor of roughly $25 to $40. Check your statement and adjust the fields to match.
Does the calculator include new purchases?
No. It assumes you stop using the card while you pay it down. If you keep spending on it, payoff will take longer and cost more.