The minimum payment trap
Card issuers set minimums that often look like “1–3% of balance or $25–$40, whichever is greater,” sometimes structured as interest due plus a slice of principal. That design keeps accounts current while extending repayment for years and maximising interest. This calculator shows the years and total interest if you truly pay only that rule every month and never charge again.
How to read the inputs
Balance is what you owe today. APR is the purchase rate applying to that balance. Minimum percent is the share of the current balance used each month (try 1, 2 or 3). Floor is the dollar floor (often $25–$40). Each month we accrue interest at APR÷12, compute min = max(floor, balance × percent), apply the payment, and repeat until the balance clears or 600 months elapse.
If the rule cannot cover interest, the tool reports that the balance never clears — a realistic outcome for very high APRs paired with a 1% rule.
Why the total interest shocks people
On a $5,000 balance at roughly 20% APR with a 2% minimum, repayment commonly stretches many years and interest can rival a large fraction of the original principal. Raising the payment by even $50–$100 monthly often cuts years off the schedule. That is why payoff calculators and snowball/avalanche planners emphasise a fixed “debt payment” larger than the sum of minimums.
Statement minimums versus this model
Your PDF statement minimum may include interest, past-due amounts or special plan payments. Treat this tool as an educational sketch of percentage-of-balance rules, then compare against your actual statement. If you are in a hardship plan, use the plan’s payment instead.
Read more in the minimum payment trap and run a faster payoff in the credit-card payoff calculator. Educational use only — not credit counselling.
Privacy and honesty
Calculations run locally in your browser on DebtClear. We do not need an account and we do not receive the numbers you type. Advertisers help keep the tools free; ads are labelled. Affiliate links, when present, use rel="sponsored" and are described in the affiliate disclosure.
This site is not a lender, debt settler or credit counselor. Results are estimates. Confirm APRs, fees and payoff quotes with your issuer. For complaints or collection rights, start with consumerfinance.gov and ftc.gov.
Using this tool responsibly
Enter figures from your latest statements, not rough guesses, when you need a serious plan. Results update as you type and remain in your browser. Change one input at a time when comparing scenarios so cause and effect stay obvious.
DebtClear provides educational arithmetic only. We are not a lender, debt settler or credit counselor. APRs, fees and hardship programmes change. Confirm payoff quotes with your issuer. For collection rights, start at consumerfinance.gov and consumer.ftc.gov.
Advertisers help keep these calculators free. Ads are labelled. Affiliate links, when configured with tracking IDs, are disclosed and marked sponsored. Empty tags mean we currently link to official homepages without commission parameters.
Next steps after you run the numbers
Write down the payment you chose and the target payoff month. Automate at least the minimums. Schedule the extra on payday. Revisit after any balance transfer, consolidation loan or APR change. Pair this tool with the guides on DebtClear so the why matches the math.