Free · Minimum payment trap · 22% APR math
Credit card calculator
Credit cards charge 18–29% APR. Pay only the minimum and a $5,000 balance takes 28 years to clear, costing $14k in interest. See your true number — and what extra it'd take to escape in 2 years.
2026 credit card minimum payment trap · CFPB CARD Act Report · FRB G.19 TERMCBCCALLNS series
Min-only on $5,000 at 22.84% APR: 17 years, $7,135 in interest
Most issuers set minimum payment at 1% of balance + interest accrued, with a $25–$35 floor. On a $5,000 balance at the FRB G.19 2026 average APR of 22.84%, paying only the minimum takes 17 years and costs more in interest than the original balance.
We default the schedule view to minimum-only so the 17-year horror is visible without toggling — most calculators hide it behind 'advanced' settings.
Strategy
Choose your payoff method
Your debts
4 debts · Total: $35,800
53% utilization
63% utilization
$200
Applied on top of minimum payments to accelerate the snowball
Debt-free in
3y 11m
Interest paid
$4,815
Total paid back
$40,615
Comparison
Snowball vs Avalanche
❄️ Snowball
Time:3y 11m
Interest:$4,815
🏔️ Avalanche
Time:3y 11m
Interest:$4,730
💡 Avalanche saves you $85 in interest, but snowball gives faster psychological wins.
Payoff order
When each debt disappears
The minimum payment trap
Credit card minimums are typically 1–3% of balance (or $25–$35 floor, whichever is greater). At 2% min on a $5,000 balance at 22% APR:
- Month 1 minimum: $100. Of that, $92 goes to interest, $8 to principal.
- Year 1: paid ~$1,150 total. Balance dropped ~$45.
- Full payoff at minimums: 28+ years.
- Total interest paid: $14,000+ on the original $5,000.
This is by design — issuers profit from minimum payers.
Escape velocity — fixed extra payments
| $5k @ 22% | Pay/month | Payoff | Total interest |
|---|---|---|---|
| Minimum only | $100 (1st mo) | 28+ yrs | $14,000+ |
| Fixed $150/mo | $150 | 4.5 yrs | $3,043 |
| Fixed $250/mo | $250 | 2.2 yrs | $1,341 |
| Fixed $500/mo | $500 | 11 mo | $575 |
| Fixed $1,000/mo | $1,000 | 5 mo | $268 |
Three credit card escape tactics
- 0% balance transfer: move balance to a card with 15–21 month 0% intro APR. Pay it off in the window, save thousands in interest. Watch the 3–5% transfer fee.
- Personal loan consolidation: swap 22% credit card APR for 10–12% personal loan. Saves interest, fixes the payment, kills the revolving cycle.
- Avalanche extra payments: highest-APR card first, minimums on the rest, dump everything extra.
Credit Card Calculator FAQ
How is credit card interest calculated?
Most cards use a daily periodic rate (APR ÷ 365) applied to your average daily balance. So at 22% APR, daily rate is 0.0603%. A $5,000 balance accrues $3.01/day = ~$90/month of pure interest. Pay statement balance in full each month and no interest is charged.
What's the minimum payment on a credit card?
Most issuers: greater of (a) 1–3% of balance OR (b) a flat floor of $25–$35. On a $5,000 balance: 2% min = $100/month. As balance falls, min falls too — which is exactly why minimums never get you out.
Does paying more than minimum help my credit score?
Yes, indirectly. Lower balance = lower utilization = higher FICO. Paying down a card from 80% to 30% utilization typically adds 30–80 points. The minimum-vs-extra payment behavior itself isn't reported; balance changes are.
Should I close paid-off credit cards?
Usually no. Closing reduces available credit, raises overall utilization, and shortens average account age — all credit-score negatives. Keep zero-balance cards open. Cancel only if there's a high annual fee you can't get waived.
What's a credit card grace period?
The window between when a statement closes and when payment is due — typically 21–25 days. Pay statement balance in full within the grace period and you owe zero interest, even if you carried a balance during the cycle. Lose the grace period by carrying any balance from month to month.
Should I negotiate my credit card APR?
Yes. Call customer service, ask for a lower rate, cite competing offers and your payment history. Success rate is ~30% if you've been a customer for 12+ months with on-time payments. Typical reduction: 2–5 percentage points.
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