The Minimum Payment Trap

Credit card issuers set minimums low — usually 1–3% of the balance or a flat floor — so the debt stays profitable. This minimum payment calculator simulates month by month what that really costs: the payoff timeline, the interest, and the total you hand the bank.

How the Simulation Works

Each month, interest accrues on the current balance at APR/12, the payment is the greater of the percentage minimum and the floor, and the remainder carries forward. Paying only the minimum on a $5,000 balance at 22.9% APR means decades of payments and thousands in interest.

Escaping Faster

Add a fixed extra payment and watch the chart bend: extra dollars attack principal directly, skipping future interest. The difference between minimum-only and minimum-plus-$50 is usually measured in years — and the interest saved can rival the balance itself.