Minimum Payment Calculator
Discover the real cost of paying only the credit card minimum — years of debt and thousands in unnecessary interest.
The Minimum Payment Trap Explained
Credit card minimum payments are deliberately set low to maximize interest revenue for issuers. A 2% minimum on an $8,000 balance at 22% APR leaves you in debt for over 20 years and costs $9,000+ in interest — more than the original balance. This is legal and disclosed on every statement, but most cardholders do not calculate the true impact.
CARD Act Statement Disclosure
Since 2010, the CARD Act requires credit card statements to show how long it takes to pay off the balance making minimum payments, and the total interest paid. If you see those numbers and continue paying only the minimum, you are making an informed choice to pay thousands more than necessary.
The Fixed Payment Solution
The simplest fix: never let your credit card payment drop below the first minimum payment you make. As the balance falls and the calculated minimum decreases, keep paying the original amount. This one rule can cut payoff time by 50–70% and save thousands in interest with minimal budget impact.