Calculate how long a credit card balance takes to pay off on minimum payments versus a fixed monthly payment, and the interest each costs.
By AdminDrafted with AI writing toolsUpdated Checked examples: 4
Paying $200.00 a month clears the card in 35 months with $1,859.78 of interest. Minimum payments take 232 months (19.3 years) and cost $8,453.56 in interest, $6,593.78 more.
| Month | Minimum payment | Balance (minimum) | Fixed payment | Balance (fixed) |
|---|---|---|---|---|
| 1 | $145.42 | $4,950.00 | $200.00 | $4,895.42 |
| 2 | $143.96 | $4,900.50 | $200.00 | $4,788.84 |
| 3 | $142.52 | $4,851.50 | $200.00 | $4,680.22 |
| 4 | $141.10 | $4,802.98 | $200.00 | $4,569.54 |
| 5 | $139.69 | $4,754.95 | $200.00 | $4,456.74 |
| 6 | $138.29 | $4,707.40 | $200.00 | $4,341.79 |
| 7 | $136.91 | $4,660.33 | $200.00 | $4,224.65 |
| 8 | $135.54 | $4,613.72 | $200.00 | $4,105.27 |
| 9 | $134.18 | $4,567.59 | $200.00 | $3,983.61 |
| 10 | $132.84 | $4,521.91 | $200.00 | $3,859.63 |
| 11 | $131.51 | $4,476.69 | $200.00 | $3,733.28 |
| 12 | $130.20 | $4,431.92 | $200.00 | $3,604.53 |
The minimum is recalculated every month from the new balance, so it shrinks as the balance falls.
Card interest accrues each month at APR ÷ 12 on the balance, and the minimum payment is recalculated from the new balance every month, so it shrinks as the debt falls and the payoff drags on. The calculator runs two schedules month by month, one on minimum payments and one at a fixed amount, and compares the months and interest each takes.
With the defaults, a 5,000 balance at 22.9% APR, a fixed 200 a month clears the card in 35 months with 1,859.78 of interest. The minimum (1% of the balance plus the month's interest, at least 25) starts at 145.42 and takes 232 months, 19.3 years, costing 8,453.56.
Issuers charge interest daily on the average daily balance, so statements differ slightly from this monthly model, and new purchases are not included. Check your card agreement for its minimum payment rule.
Each month, add interest at APR ÷ 12 to the balance, subtract your payment, and count the months until nothing is left. A 5,000 balance at 22.9% APR paid at 200 a month clears in 35 months with 1,859.78 of interest. Paying only a minimum of 1% plus interest takes 232 months and costs 8,453.56.
Both schedules assume no new purchases or fees and one constant APR. The gap between them is the cost of letting the minimum shrink with the balance.
A minimum payment is recalculated from each month's balance, so it falls as the debt falls and the payoff drags on. On a common US rule, 1% of the balance plus the month's interest with a floor of 25, the first minimum on 5,000 at 22.9% is:
Only the 1% repays principal, so the balance shrinks by just 1% a month while interest takes about two thirds of each payment. Keeping the payment at 145.42 instead clears the card in 57 months with 3,212.63 of interest.
Issuers word their rules differently. A minimum of 3% of the statement balance, taken after the month's interest is added, starts at 152.86 on the same card and takes 180 months and 7,070.63 of interest.
Use the percentage and floor printed in your card agreement.
Each row starts from 5,000 at 22.9% APR, and the last payment is only what is still owed:
| Fixed monthly payment | Months to payoff | Total interest |
|---|---|---|
| 150 | 54 | 3021.92 |
| 200 | 35 | 1859.78 |
| 300 | 21 | 1075.70 |
Doubling the payment from 150 to 300 cuts the interest by 64%. Each extra payment lowers the balance sooner and shrinks every later month's interest.
The saving per extra unit falls as the payment rises: the first extra 50 a month saves 1,162.14, and the next 100 saves another 784.08.
The fixed payment has to exceed the first month's interest, 95.42 here, or the balance never falls.
To clear a balance in a fixed number of months, use the loan payment formula with the card's APR. Clearing 5,000 at 22.9% in 36 months takes 193.29 a month and 1,958.37 of interest; in 24 months it takes 261.62 a month and 1,278.84.
The loan EMI calculator works out that level payment from the balance, APR and months. US statements show a similar 36-month figure and its saving against minimum payments, unless the minimum already clears the balance within 3 years.
Issuers usually charge interest daily on the average daily balance, so a statement differs a little from a monthly model. Statement dates, several APRs on one card, promotional rates, grace periods and new purchases all move the real figures.
The CFPB's repayment-disclosure rules set the assumptions behind the minimum-payment estimates on US statements. Your own plan can differ from those regulated estimates.
A minimum set very low can fail to clear the balance at all. With 0.1% of the statement balance and no floor, 5,000 at 22.9% is still unpaid after 100 years, because each payment is smaller than the month's interest and the balance keeps growing.
To spread one budget across several debts, use the debt snowball vs avalanche calculator.
Checked against: Month-by-month simulation, interest at APR/12 then payment
Checked against: Independent calculation
Checked against: 1000 × 1% = 10 interest, cleared in one payment; the 25 floor exceeds 2% × 1010
Checked against: 1200 / 100 = 12 months; 2% of the balance never exceeds the 25 floor, so 1200 / 25 = 48 months
Often decades, because the minimum shrinks with the balance. A 5,000 balance at 22.9% APR on a minimum of 1% plus interest (at least 25) takes 232 months, 19.3 years, and costs 8,453.56 in interest. In the US, Regulation Z (12 CFR 1026.7(b)(12)) requires each statement to show the payoff time and total cost at the minimum payment.
Use the loan payment formula with 36 months. Clearing 5,000 at 22.9% APR in 36 months takes 193.29 a month and 1,958.37 of interest; in 24 months it takes 261.62 a month and 1,278.84 of interest. US statements show the 36-month figure and the saving against minimum payments, unless the minimum already clears the balance within 3 years (Regulation Z).
The APR is divided into a periodic rate and applied to the balance. At 22.9% APR the monthly rate is 22.9 ÷ 12 = 1.908%, so a 5,000 balance accrues 95.42 of interest in the first month. Issuers usually apply a daily rate to the average daily balance instead, which gives a slightly different figure, and interest is charged on interest left unpaid.
22.15% APR for US accounts assessed interest in the second quarter of 2026, according to the Federal Reserve's G.19 consumer credit release of 8 September 2026. At that rate, 5,000 paid off at 200 a month takes 34 months and costs 1,767.76 in interest, against 35 months and 1,859.78 at the 22.9% default.
Each extra amount shortens the payoff sharply. On 5,000 at 22.9% APR, 150 a month takes 54 months and 3,021.92 of interest, 200 takes 35 months and 1,859.78, and 300 takes 21 months and 1,075.70. Doubling the payment from 150 to 300 cuts the interest by 64%.
For planning only. Lenders, tax authorities and markets apply their own rounding, fees and rules; confirm figures with them before you commit.
This calculator includes 4 worked examples with independently sourced answers. They run in the test suite, and you can run them here too.