Why Paying Only the Credit Card Minimum Can Backfire
When a credit card bill feels overwhelming, it's tempting to pay only the minimum and let the rest carry over to next month. Your monthly payment shrinks, but the unpaid balance keeps accruing interest at your card's APR, and that interest gets added right back onto the balance, so the amount you owe can snowball over time instead of going down. This calculator estimates how long it will take to pay off your balance and how much total interest you'll pay if you stick to minimum payments only. Carrying a revolving balance for a long stretch can also push up your credit utilization ratio and, in turn, hurt your credit score, so it's worth building a real payoff plan sooner rather than later. The larger your balance and the lower your minimum payment rate, the longer payoff takes and the more interest piles up. Even bumping your monthly payment up gradually, or throwing extra cash at the balance when you can, cuts your total interest significantly and shortens the payoff timeline.
How It's Calculated
| Step | Description |
|---|---|
| 1 | Apply the APR to the current balance to get this month's interest |
| 2 | Multiply the balance by the minimum payment rate to get this month's payment |
| 3 | Payment minus interest equals the amount applied to principal |
| 4 | Repeat monthly until the balance reaches zero |
Frequently Asked Questions
Most U.S. issuers set it around 1-3% of the balance (or a flat minimum like $25, whichever is greater). A lower rate means smaller payments but far more total interest.
Yes, paying only the minimum and letting the rest roll over each month is exactly what carrying a balance means, and it can chip away at your credit score over time.
If your monthly payment doesn't even cover the interest charged, your balance can grow instead of shrink. This calculator shows a warning when payoff isn't possible.
※ This is a simplified estimate — actual results may vary based on your card issuer's terms, fees, and minimum payment formula.