Credit Card Payoff Calculator: Fixed Payment vs Minimum-Payment Trap
Enter your balance, APR, and a fixed monthly payment to see exactly when you'll be debt-free and how much interest you'll pay. The calculator also runs the minimum-payment path alongside — so you can see the full cost of only ever paying the card's required minimum, in months and in dollars.
Payoff time (at $200/mo)
2 yr 10 mo
Total interest
$1,750
Total paid
$6,750
Minimum-payment path
Convention: max(interest + 1 % of balance, $25)
Time to payoff
19 yr 2 mo
Total interest
$8,100
Months saved
+196 mo
Interest saved
$6,350
At minimum payments you would pay 1.62× the original balance in interest alone before the card is cleared.
Balance over time (fixed payment)
Payment schedule
| Mo | Payment | Interest | Principal | Balance |
|---|---|---|---|---|
| 1 | $200 | $92 | $108 | $4,892 |
| 2 | $200 | $90 | $110 | $4,781 |
| 3 | $200 | $88 | $112 | $4,669 |
| 4 | $200 | $86 | $114 | $4,555 |
| 5 | $200 | $84 | $117 | $4,438 |
| 6 | $200 | $81 | $119 | $4,319 |
| 7 | $200 | $79 | $121 | $4,199 |
| 8 | $200 | $77 | $123 | $4,076 |
| 9 | $200 | $75 | $125 | $3,950 |
| 10 | $200 | $72 | $128 | $3,823 |
| 11 | $200 | $70 | $130 | $3,693 |
| 12 | $200 | $68 | $132 | $3,561 |
| 13 | $200 | $65 | $135 | $3,426 |
| 14 | $200 | $63 | $137 | $3,289 |
| 15 | $200 | $60 | $140 | $3,149 |
| 16 | $200 | $58 | $142 | $3,007 |
| 17 | $200 | $55 | $145 | $2,862 |
| 18 | $200 | $52 | $148 | $2,714 |
| 19 | $200 | $50 | $150 | $2,564 |
| 20 | $200 | $47 | $153 | $2,411 |
| 21 | $200 | $44 | $156 | $2,255 |
| 22 | $200 | $41 | $159 | $2,097 |
| 23 | $200 | $38 | $162 | $1,935 |
| 24 | $200 | $35 | $165 | $1,770 |
| 25 | $200 | $32 | $168 | $1,603 |
| 26 | $200 | $29 | $171 | $1,432 |
| 27 | $200 | $26 | $174 | $1,259 |
| 28 | $200 | $23 | $177 | $1,082 |
| 29 | $200 | $20 | $180 | $902 |
| 30 | $200 | $17 | $183 | $718 |
| 31 | $200 | $13 | $187 | $531 |
| 32 | $200 | $10 | $190 | $341 |
| 33 | $200 | $6 | $194 | $147 |
| 34 | $150 | $3 | $147 | $0 |
How it works
The fixed-payment calculation runs a month-by-month simulation: each month interest accrues on the remaining balance at APR ÷ 12, then your payment is applied — first covering interest, with the rest reducing principal. The closed-form horizon is −ln(1 − r·B/P) ÷ ln(1 + r), where r is the monthly rate, B the balance, and P the payment. The schedule confirms the result and shows every row.
The minimum-payment simulation uses the convention: min payment = max(monthly interest + 1 % of balance, $25). This matches the most common US issuer formula, where 1 % of the outstanding principal is paid each month on top of all interest charges, with a $25 floor. Because the net principal repaid each month is just 1 % of the remaining balance, the balance shrinks geometrically — roughly 0.99× per cycle — making payoff take far longer than most cardholders expect.
The target-date solver reverses the amortization formula to find the payment required to clear the balance in exactly N months: P = r·B ÷ (1 − (1 + r)^−N). Use this to set a concrete payoff goal — for example, 'how much do I need to pay each month to be card-free in 18 months?'
Frequently asked questions
How does the minimum-payment trap work?+
When your minimum payment equals your monthly interest plus just 1 % of your balance, the only principal you're repaying is that 1 %. That means your balance shrinks by about 1 % per month — geometric decay that can take 15–25 years to reach zero on a typical high-APR card. Meanwhile interest accumulates on nearly the full balance throughout, so you often pay more in total interest than the original amount you charged. This calculator shows you the exact numbers so you can decide how much extra to pay. This tool provides estimates only and is not financial advice; consider speaking with a certified financial counselor for personalised guidance.
Is it better to pay off credit cards or invest?+
Credit cards typically carry 18–29 % APR — rates that would be extraordinary investment returns. Paying down a 22 % card is the equivalent of a guaranteed 22 % after-tax return, which no diversified investment reliably matches. A common guideline: build a small emergency fund first, then eliminate high-interest credit-card debt before prioritising broader investing. Your tax situation, employer retirement match, and risk tolerance all affect the right order of operations; a financial advisor can tailor this to your circumstances.
Does paying more than the minimum affect my credit score?+
Paying more than the minimum reduces your credit utilisation ratio — outstanding balance divided by credit limit — which is one of the largest factors in most credit-scoring models. Lowering utilisation below 30 %, and ideally below 10 %, can improve your score meaningfully. Fully paying off and closing a long-standing card may cause a small temporary dip due to reduced average account age, but for most people the lower utilisation outweighs this over time.