Financial Calculator

Minimum Payment Warning

See how paying only the minimum on your credit card keeps you in debt for years.

Debt Details
Enter your current credit card balance and terms.
$2,000
$

Total amount you currently owe.

$50
$

Amount you can pay ON TOP of the minimum.

19.99
%

Annual percentage rate.

2
%

Usually 1-3% of balance.

Payoff Check
Accelerated

Save $4,258

By adding just $50 extra per month, you act as a principal accelerator, ensuring that you will finish your credit card 16y 10m sooner.

Minimum
19y 8m
$4,852 Int.
Accelerated
2y 10m
$594 Int.

The Minimum Payment Trap

Credit card issuers often set minimum payments low (usually interest + 1% of balance) to keep you paying interest for as long as possible. This calculator reveals the true cost of that strategy.

Negative Amortization Risk

If your minimum payment barely covers interest, your principal balance decreases very slowly. In some cases, you might be paying mostly interest for years.

The Power of +$50

Adding even a small extra amount to your monthly payment acts as a 'principal accelerator', drastically reducing both the time to pay off and total interest owed.