Credit Card Payoff
See the minimum-payment trap in dollars — then what a fixed payment saves you.
The minimum scenario assumes a typical 2% of balance (min $25), recalculated as the balance falls.
A fixed $250/month clears the card in 2 yrs 8 mo and saves $52,440 in interest versus minimum payments. Minimum payments are designed to keep you in debt; any fixed amount above them is the fastest lever you control.
Show payoff schedule
| Year | Interest | Principal | Balance |
|---|---|---|---|
| 1 | $1,140 | $1,860 | $4,140 |
| 2 | $687 | $2,313 | $1,826 |
| 3 | $153 | $1,826 | $0 |
How to use this calculator
- Enter your balance and APRFrom your latest statement.
- Enter a fixed monthly paymentA steady amount instead of the shrinking minimum.
- Compare the two payoff pathsSee the years and interest the minimum-payment trap costs you.
Credit card minimum payments are engineered to keep you paying for as long as possible. Because the minimum is usually a small percentage of the balance, it shrinks as you pay — so the debt drags on for years and the interest piles up. This calculator puts a real number on that trap, then shows what a fixed monthly payment does instead.
Why minimums are a trap
A typical minimum is about 2% of the balance (with a small floor). On a $6,000 balance at 22% APR, that is around $120 the first month — but nearly all of it goes to interest, so the balance barely moves. Worse, as the balance falls, the minimum falls with it, stretching the payoff over more than a decade and costing thousands in interest. The minimum is not a plan; it is a leash.
The fix: pay a fixed amount
The single most powerful lever you control is paying a fixed dollar amount each month instead of the shrinking minimum. Because the payment stays constant while the balance drops, more of every payment attacks principal, and the payoff accelerates. On that same $6,000 balance, paying a steady $250 a month clears it in under three years and saves a large share of the interest.
One caveat
Your fixed payment has to exceed the monthly interest, or the balance will never fall. If a payment barely covers interest, the calculator will flag it — that is the signal to either raise the payment or look at a lower-rate option like a balance transfer.
A worked example
Enter a $6,000 balance at 22% APR. Minimum-only payments take well over a decade and cost more in interest than the original balance; a fixed $250/month clears it in about 2.5 years. Move the numbers above to see your own trap — and your own way out.