Where Does Your Minimum Payment Go?
See how much of this month's credit card minimum is interest, how long the minimum takes, and what it takes to be out in 1, 2, 3 or 5 years. Nothing is sent anywhere; the math runs in your browser.
All 3 are printed on your credit card statement. Example numbers shown; type yours.
Your Result
Of your $ 122 minimum this month,
$ 110
goes to interest. $ 12 lowers your balance.
Paying only the minimum: Debt-Free in 10 years 8 months, $ 9,574 in interest.
To be out in 3 years, pay $ 229 a month.
To Be Debt-Free In
- 1 year: $ 562 a month
- 2 years: $ 311 a month
- 3 years: $ 229 a month
- 5 years: $ 166 a month
Some statements let the minimum shrink as the balance shrinks. That stretches the payoff even longer, so paying the same amount every month is the faster path.
How I Calculated This
This month's interest is $ 6,000 times 22% divided by 12, which is $ 110. The rest of your $ 122 minimum, $ 12, lowers the balance.
Paying $ 122 every month, the balance clears in 10 years 8 months with $ 9,574 in interest.
The payments for 1, 2, 3 and 5 years come from the standard loan formula at 22%. This assumes a fixed interest rate, no new charges and the same payment every month.
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Questions People Ask
How Is The Minimum Payment Figured?
Each credit card company sets its own formula, and it is written in your credit card agreement. Your statement shows the dollar amount due; type that in.
What Is The 3 Year Number On My Statement?
U.S. credit card statements carry a box that shows how long paying only the minimum takes, and the monthly payment that clears the balance in 3 years. This calculator shows the same idea for your numbers.
How Do I Pay Less Interest?
Pay more than the minimum, the same amount every month, and ask your credit card company for a lower interest rate. Here is how to ask.