CalcMint Pro

Minimum Payment Trap Calculator

Discover how minimum payments turn a small balance into decades of debt — and exactly how much extra it costs you.

Payoff time (min payments only)
100y 0m
Total interest (min only)
$69,459.53
The real price of carrying this balance
Updates instantly · formula shown below

How to use this minimum payment trap calculator

  1. Enter your balance and APR from your card statement.
  2. Default minimum is 2% of balance — check your card's terms.
  3. Try adding even $50 extra/month and see how much it saves.

Formula

Each month: interest = balance × (APR/12). Payment = max($25, balance × min%). Repeat until zero.

About the Minimum Payment Trap Calculator

A $5,000 balance at 22.9% APR on 2% minimums takes over 30 years to pay off and costs $8,400 in interest. Add $100/month extra and it's done in 3 years with $1,200 in interest. This is the most impactful financial calculation most people never run.

Frequently asked questions

+Why do minimum payments take so long?

Minimums shrink as the balance shrinks. At 23% APR, nearly half your early payments go to interest.

+What's the fastest payoff strategy?

Pay as much above minimum as possible. The avalanche method (highest APR first) minimizes total interest across multiple cards.

People also use