Credit Card Minimum Payment Trap Calculator

Most credit card minimum payments are calculated as a percentage of your balance, often 1-3%. As you pay down the balance, the required minimum shrinks too, so a smaller share of each payment goes toward principal over time. Combined with a high APR compounding monthly, this can stretch payoff out to 20 years or more on cards that only require the minimum.

It's the pattern where paying only the minimum keeps a balance active for years and costs far more in interest than the original purchase amount, because the minimum barely outpaces interest early on. It isn't a hidden fee — it's simple math that isn't obvious from a single monthly statement.

Card issuers typically use whichever is greater: a fixed dollar floor (commonly around $25-$35) or a percentage of your balance (commonly 1-3%). This calculator models the percentage method with a standard $25 floor, or you can enter a fixed dollar minimum if your card uses that instead.

It depends on your balance, APR, and how much extra you add, but even a modest extra payment often cuts years off your payoff time because it reduces the balance interest compounds against every month. Enter an extra payment amount above to see your specific numbers side by side with minimum-only.

In the United States, the Credit CARD Act of 2009 requires issuers to show on every statement how long it will take to pay off the balance at minimum payments only, and the total interest that would cost. This calculator lets you model that same math with your own numbers before or between statements.

Many major card issuers use around 1-3% of the statement balance with a floor near $25-$35, though exact terms vary by issuer and card agreement. Check your card's terms and conditions or your latest statement for the exact figures your card uses.

No. Paying more than the minimum, or paying off a balance faster, does not hurt your credit score and generally helps it by lowering your credit utilization ratio, which is a significant factor in most credit scoring models.

This calculator assumes a single fixed APR for the full payoff period. If you have an introductory rate that will expire, run the calculator once with the promotional rate for reference, then rerun it with the standard rate to see how your numbers change after the promotion ends.