Minimum Payment Trap Calculator: The Real Cost of Only Paying the Minimum

Credit card minimum payments are engineered to keep you in debt as long as possible. At a 22% APR, a $5,000 balance with a $100 minimum payment takes over 8 years to pay off — and you pay roughly $4,800 in interest on top of the original $5,000. You pay nearly twice the original balance. The minimum payment trap works because credit card minimums are calculated as a percentage of the balance (typically 1–2%) or a flat minimum ($25–35), whichever is greater. This means the minimum payment decreases every month as the balance falls — creating an amortization so front-loaded with interest that most of each payment disappears before touching principal. Early in repayment, 80–90% of a minimum payment goes to interest. The principal reduction is minimal. The trap is compounded for cardholders who continue to make purchases on a balance-carrying card. New purchases immediately begin accruing interest (most cards lose the grace period when carrying a balance), adding to the balance you're barely reducing. The result is a debt that remains at roughly the same level for years despite consistent monthly payments. This calculator shows the full reality for each of your credit card debts: exact payoff timeline at minimum payments, total interest at minimum-only pace, and the comparison if you double your minimum payment or maintain a fixed payment. The result is usually shocking — and motivating.