Credit Card Payoff Calculator
How fast can you escape? Compare your fixed payment plan to the minimum-payment trap.
Your payoff plan
Months to debt-free
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Total interest paid
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Total paid
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vs minimum payment
Min-payment months
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Min-payment interest
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Why the minimum is a trap
Credit card minimum payments are calculated to keep you in debt as long as legally allowed (the CARD Act of 2009 imposed limits, but they're still slow). A typical minimum is "1% of balance + this month's interest" or $25, whichever is greater.
On a $5,000 balance at 20% APR, paying only the minimum takes ~25 years and costs you $5,000+ in interest. Paying a fixed $200/mo — about $50 more than the initial minimum — gets you out in under 3 years.
The "right" approach
Pay as much as you can each month. Snowflake the rest (small bonuses, refunds, side income) onto the card. Stop using it. Set a debt-free target date and work backwards to the monthly amount you need to hit it.