What "just pay the minimum" actually costs — and what a fixed payment does to the same balance.
Typical formula: 1% of the balance plus that month's interest, with a $25–$41 floor. It shrinks as you pay — that's why it never seems to end.
This credit card calculator contrasts paying only the minimum — which can stretch a balance over decades — with a fixed monthly payment that clears it in a fraction of the time. The interest difference is often shocking.
The calculator models a declining minimum payment (a percentage of the balance with a dollar floor) against a fixed monthly payment. Because minimums are set just above the monthly interest, almost nothing goes to principal, so the balance barely moves while interest compounds. A fixed payment, by contrast, retires the balance in a fraction of the time. It also detects payments too small to ever clear the debt.
Minimums are set just above the monthly interest, so almost nothing goes to principal. The balance barely moves while interest keeps piling up.
Interest is usually charged daily on your balance using your APR divided by 365, then summed for the billing cycle, so carried balances compound quickly.
Paying a fixed amount well above the minimum dramatically shortens the timeline. The calculator shows the exact months and interest saved.
Minimums are calculated to just cover interest plus a sliver of principal, so they shrink as the balance does. That keeps you paying interest for years or even decades on a single balance.
Most cards charge interest daily using your APR divided by 365, applied to the balance and summed over the billing cycle. Carried balances therefore compound quickly.
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