Minimum Payment Calculator
See the true cost of making only minimum payments and compare to a fixed payment strategy.
Before you calculate
A modeled minimum-payment rule may differ from your issuer agreement. New charges and fees extend repayment beyond the estimate.
How It's Calculated
Making only minimum payments keeps your balance high longer, resulting in significantly more interest paid over time.
New balance = Previous balance + Monthly interest − Modeled minimum paymentExample Scenarios
The Minimum Payment Trap
On a $5,000 balance at 20% APR with 2% minimum payments, you could pay over $6,000 in interest and take more than 30 years to pay off the debt.
The Power of Paying More
Increasing your payment by even $50 per month can cut years off your payoff timeline and save thousands in interest charges.
Sources & calculation notes
Maintained by MoneyCalc. Results are estimates based on the inputs and assumptions shown, not personalized financial advice or a lender quote. Default rates are examples unless a specific tax year or official table is identified.
References explain the underlying concepts or rules. They do not endorse or independently certify this implementation.
Calculations run in your browser. Some tools retain settings on this device. Displayed rounding can produce small differences from a statement or contract.