Credit card minimums are designed around the issuer, not the borrower: usually 1% of the balance plus that month’s interest. Because the minimum falls as the balance falls, a minimum-only repayment can run for decades and cost more in interest than the original purchases.
Time to clear the balance
2 years 7 months
Paying the minimum plus $150.00 each month clears $5,000 at 22% by Mar 2029.
| Year | Payments | Interest | Principal | Balance |
|---|---|---|---|---|
| Year 1 | $3,138 | $866 | $2,272 | $2,728 |
| Year 2 | $2,407 | $393 | $2,014 | $713 |
| Year 3 | $748 | $35 | $713 | $0 |
| Year | Payments | Interest | Principal | Balance |
|---|---|---|---|---|
| 1 | $291.67 | $91.67 | $200.00 | $4,800.00 |
| 2 | $286.00 | $88.00 | $198.00 | $4,602.00 |
| 3 | $280.39 | $84.37 | $196.02 | $4,405.98 |
| 4 | $274.84 | $80.78 | $194.06 | $4,211.92 |
| 5 | $269.34 | $77.22 | $192.12 | $4,019.80 |
| 6 | $263.89 | $73.70 | $190.20 | $3,829.60 |
| 7 | $258.51 | $70.21 | $188.30 | $3,641.31 |
| 8 | $253.17 | $66.76 | $186.41 | $3,454.89 |
| 9 | $247.89 | $63.34 | $184.55 | $3,270.34 |
| 10 | $242.66 | $59.96 | $182.70 | $3,087.64 |
| 11 | $237.48 | $56.61 | $180.88 | $2,906.77 |
| 12 | $232.36 | $53.29 | $179.07 | $2,727.70 |
| 13 | $227.28 | $50.01 | $177.28 | $2,550.42 |
| 14 | $222.26 | $46.76 | $175.50 | $2,374.92 |
| 15 | $217.29 | $43.54 | $173.75 | $2,201.17 |
| 16 | $212.37 | $40.35 | $172.01 | $2,029.16 |
| 17 | $207.49 | $37.20 | $170.29 | $1,858.86 |
| 18 | $202.67 | $34.08 | $168.59 | $1,690.28 |
| 19 | $197.89 | $30.99 | $166.90 | $1,523.37 |
| 20 | $193.16 | $27.93 | $165.23 | $1,358.14 |
| 21 | $188.48 | $24.90 | $163.58 | $1,194.56 |
| 22 | $183.85 | $21.90 | $161.95 | $1,032.61 |
| 23 | $179.26 | $18.93 | $160.33 | $872.29 |
| 24 | $175.00 | $15.99 | $159.01 | $713.28 |
| 25 | $175.00 | $13.08 | $161.92 | $551.35 |
| 26 | $175.00 | $10.11 | $164.89 | $386.46 |
| 27 | $175.00 | $7.09 | $167.91 | $218.55 |
| 28 | $175.00 | $4.01 | $170.99 | $47.55 |
| 29 | $47.55 | $0.87 | $46.68 | $0.87 |
| 30 | $0.87 | $0.02 | $0.86 | $0.02 |
| 31 | $0.02 | $0.00 | $0.02 | $0.00 |
The monthly view lists every payment in the 31-month plan.
This calculator shows both sides. Enter your balance and APR, then compare the minimum-only plan against a fixed monthly payment, including the total interest and the exact month you become debt free.
Most US issuers charge the greater of a percentage of the balance plus interest, or a floor amount such as $25. This calculator uses 1% of the balance plus accrued interest, with a $25 floor — the most common formula in card agreements.
Because the minimum is recalculated every month on a shrinking balance, the payment declines over time and the payoff date stretches out. That is the trap the fixed-payment comparison exposes.
A fixed payment keeps attacking the balance at the same rate, so the interest charge shrinks faster and the payoff accelerates. On a $5,000 balance at 22% APR, the minimum-only plan runs for well over a decade; $250 a month clears it in under two and a half years.
Any extra amount you can commit is worth more the earlier it is applied, because it removes interest that would otherwise compound for the remaining months.
New purchases, cash advances, annual fees, penalty APR and late fees are excluded, since they depend on how you use the card. The model assumes the rate stays fixed and that you keep paying until the balance reaches zero.
Each example below was run through the calculator on this page when the site was built, so the numbers match what you see when you enter the same inputs.
Time to clear the balance
19 years 4 months
Paying the minimum plus $0.00 each month clears $5,000 at 22% by Dec 2045.
The minimum falls every month, so the plan stretches out and interest compounds for years.
Time to clear the balance
2 years 7 months
Paying the minimum plus $150.00 each month clears $5,000 at 22% by Mar 2029.
Adding a fixed amount on top of the minimum cuts both the payoff time and the interest bill dramatically.
Time to clear the balance
2 years 4 months
Paying the minimum plus $400.00 each month clears $12,000 at 15% by Dec 2028.
A lower promotional rate helps, but the fixed payment is what actually finishes the plan.
The minimum is a small percentage of the balance, and it shrinks as the balance falls, so the payment barely outpaces the interest each month. On a typical card at 22% APR, a minimum-only plan can run 15 years or more.
Issuers typically charge the greater of 1% of the balance plus that month’s interest, or a floor of $25 to $35. Some use 2% or 3% of the balance with no separate interest component. Check your card agreement for the exact formula.
A 0% promotional transfer can be worth it if you clear the balance before the promotion ends and the transfer fee (usually 3% to 5%) is smaller than the interest you would otherwise pay. Fail to clear it in time and the standard APR applies to the remaining balance.
The one with the highest APR, unless a smaller balance would give you a faster psychological win and keep you motivated. The debt payoff calculator compares both orders with your real balances.
It helps indirectly by reducing utilisation, which is the share of your limit in use. Paying down a card also shortens the time to debt freedom and reduces the interest that makes the balance harder to clear.
You are charged a late fee, the issuer may raise your APR to a penalty rate, and the missed payment is reported to credit bureaus once it is 30 days late. If the minimum is unaffordable, contact the issuer before the due date rather than after.
Last reviewed 2026-09-13. This page is an estimate tool, not financial, tax or legal advice.Read the full disclaimer.