Minimum Payment Trap Calculator

Minimum payment trap calculator for credit cards and revolving balances

Minimum payments feel safe because they are small and always “allowed.” The problem is that they are designed to keep your account current, not to help you finish quickly. When you pay only the minimum, your payment usually shrinks over time as the balance drops, which can stretch repayment out for years and inflate total interest paid.

This minimum payment trap calculator estimates two things that matter most: how long payoff takes and how much interest you will pay in total. It models the common minimum-payment rule used on revolving credit, where the payment each month is the greater of a percentage of the balance or a fixed minimum amount. You can also add an optional extra payment amount to see how even a modest top-up changes the outcome.

If you have a deadline in mind, you can enter a target payoff time in months. The calculator will estimate the fixed monthly payment needed to hit that target (based on your balance and APR) and show you how that compares to minimum-only repayment. This is useful when you want a clear plan rather than an open-ended payoff timeline.

The results are intentionally practical. You will see an estimated payoff time in years and months, total paid, and total interest. You will also see a simple “first month” view so you can understand the mechanics: how much of the payment goes to interest versus principal. When the math indicates you are effectively stuck (for example, if the minimum payment does not even cover monthly interest), the calculator will tell you clearly because that is the trap in its purest form.

This tool is best for credit cards, store cards, and any revolving balance where the required payment depends on the balance. It is also a good approximation for lines of credit that behave similarly. It is not an amortization schedule for an installment loan with a fixed term, because those products have fixed payment rules and a defined end date from the start.

Use it in two passes. First, enter your best estimate for balance and APR and run it with the default minimum-payment settings to get a baseline. Second, add an extra payment amount that feels realistic and run it again. The difference in payoff time is usually the quickest way to see where your leverage is.

Assumptions and how to use this calculator

• The balance is treated as a single revolving balance with no new purchases, no cash advances, and no additional borrowing after you start paying it down.
• APR is converted to a monthly rate by dividing by 12, and interest is applied monthly to the remaining balance.
• The minimum payment rule is modeled as the greater of (minimum rate × balance) or the minimum floor, plus any optional extra payment you add.
• Fees, promotions, and penalty APR are not included. If your card has monthly fees or a temporary promo rate, treat the result as a baseline, not a guarantee.
• If you enter a target payoff time, the calculator estimates the fixed monthly payment needed to finish in that many months, assuming the APR stays constant over the period.

Common questions

Why does minimum-only repayment take so long?

Two things stretch it out. First, interest is front-loaded because it is calculated on the current balance, which is largest at the start. Second, many minimum payment rules reduce the payment as the balance declines. That means you do not keep paying “a strong amount” for long enough to finish quickly, so the tail can drag for years.

What does it mean if the calculator says you may never pay it off?

That happens when the payment you are making is not enough to cover the interest that accrues each month (or it only barely covers it). In that situation, the balance does not shrink meaningfully, and in some cases it grows. The fix is simple: the payment must be higher than the monthly interest, consistently.

How do I choose a realistic extra payment amount?

Start with a number you can sustain every month without fail. Consistency beats a big payment that you only manage once or twice. If your budget is tight, even a small extra payment can shorten the payoff time because it reduces the balance sooner, which reduces future interest.

If I enter a target payoff time, is the “required payment” guaranteed?

It is a model-based estimate. It assumes your APR stays the same, you do not add new purchases, and you pay the estimated amount every month on time. If your APR changes, you miss payments, or you keep spending on the card, you will need a higher payment to hit the same target.

Does this apply to personal loans or fixed-term loans?

Not directly. Personal loans and other installment loans typically have a fixed payment and a fixed term that already defines payoff time. This calculator is designed for revolving credit where the required payment changes with the balance. For installment loans, use an amortization or repayment schedule calculator instead.