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See how long it takes to clear your balance making only minimum payments, the total interest cost over that period, and how much you save by paying more each month.
Most US credit card issuers set the minimum payment as either a flat amount (often $25–$35) or a percentage of the outstanding balance (typically 1–2%), whichever is greater. At high APRs, this minimum is often barely more than the interest charge, meaning only a tiny fraction reduces the principal each month. A $5,000 balance at 20% APR with a 2% minimum payment takes over 22 years to pay off and costs more than $6,500 in interest — more than the original debt. Increasing the monthly payment to $200 clears the same balance in under 3 years for roughly $1,200 in interest. This calculator shows both scenarios side by side so you can see the exact cost of making only minimums versus a fixed higher payment.
US issuers typically set minimum payments as the greater of: (a) a flat floor amount (commonly $25–$35), or (b) 1–2% of the outstanding balance. Some cards use 1% of balance plus the current month's interest and fees. Check your card agreement for the exact formula.
Because the minimum payment decreases as the balance decreases. When you owe $5,000 at 2% minimum, you pay $100. When the balance drops to $2,000, you only pay $40. The ever-shrinking payment means principal reduction slows dramatically as the balance falls.
No. US federal law (the CARD Act of 2009) prohibits prepayment penalties on credit cards. You can always pay any amount above the minimum — including the full balance — with no fees.
A common rule of thumb is to pay at least 1% of the original balance plus the monthly interest charge. If that's unaffordable, paying even $50–$100 above the minimum cuts payoff time substantially at high APRs.
Yes. Payment history is the single largest FICO factor (~35% of score). Making minimum payments on time protects your score from late payment damage — but the high utilization from a large unpaid balance will still weigh on your score.
Have more questions? These calculators provide estimates for educational purposes only. For personalized financial advice, consult with a qualified financial professional. See our disclaimer for more information.
$5,000 balance at 21% APR with only minimum payments
{
"balance": 5000,
"apr": 21
}