Free Minimum Payment Trap Calculator
See how long it takes to pay off credit card debt with only minimum payments and how much extra interest you pay.
USD
%
%
USD
Months (Minimum Only)
137 months
First Minimum Payment$100
Total Interest (Minimums)$8,700
Months (Double Minimum)34 months
Months (Minimum Only) vs Annual Percentage Rate
The Minimum Payment Trap
Credit card minimum payments are designed to maximize the interest the lender collects. They typically equal 1-3% of the balance or a flat floor (like $25), whichever is greater.
Why Minimums Are Dangerous
At 22% APR with 2% minimums:
The Fix
Doubling your minimum payment can cut payoff time by more than half.
Example Calculation
$5,000 balance at 22% APR, 2% minimum payment ($25 floor).
- 01First minimum = max($5,000 x 2%, $25) = $100
- 02Monthly interest = $5,000 x 22%/12 = $92
- 03Only $8 goes to principal in month 1!
- 04At minimums only: ~199 months (16.6 years)
- 05Total interest: ~$14,900 (nearly 3x the balance)
- 06Doubling to $200: ~31 months, saving thousands
Frequently Asked Questions
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How to Calculate Mortgage Payments
Learn how to calculate mortgage payments step by step. Understand the mortgage payment formula, principal vs. interest breakdown, escrow, PMI, and how to use amortization schedules.