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Minimum Payment Cost Calculator

See how long minimum payments really take — and what they cost — compared with a fixed payment.

Minimums-only payoff19 yr 8 mo

Understanding this calculator

Minimum payments are engineered to keep balances alive: as the balance falls, so does the required payment, stretching a moderate balance into decades of interest. Your statement's disclosure box hints at this; this calculator shows the full picture and what any fixed payment does instead.

The escape is almost embarrassingly simple — freeze your payment at today's minimum instead of letting it decline. Same starting outlay, years faster, thousands cheaper.

Assumptions and methodology

  • Models the common issuer minimum of interest + 1% of the balance, with a $25 floor (formulas vary by issuer).
  • The comparison payment is fixed at the level you choose.
  • Assumes no new charges and a constant APR.

Last reviewed August 30, 2026. Year-specific figures show their tax or data year in the tool; data is reviewed when the IRS, SSA, and CMS publish annual updates.

Common questions

Why do minimums exist if they're so costly?

They keep accounts current at the lowest possible outlay — useful in a genuine emergency month, expensive as a habit. Treat the minimum as a floor for bad months, not a plan.