About the Minimum Payment Calculator
The minimum payment is designed to keep you in debt: because it shrinks as your balance falls, paying only the minimum can stretch a modest balance across decades and multiply what you owe in interest. This calculator shows exactly how long and how costly that path is.
How it’s calculated
Each month the minimum is the interest plus a small percent of the principal (with a dollar floor). As the balance falls, the minimum falls too, so principal is repaid slowly. The payoff is simulated month by month.
Example calculation
A $5,000 balance at 22.9% APR, paying the interest plus 1% of principal, takes roughly 19 years and over $8,000 in interest to clear.
Frequently asked questions
Why does the minimum keep the debt so long?
Because it's a percentage of the balance, the minimum drops as you pay down — so less goes to principal over time. Paying a fixed amount instead keeps chipping away at the balance.
What should I pay instead?
A fixed monthly amount above the minimum. Even a modest fixed payment can cut a decades-long payoff to a few years and save thousands in interest.
This calculator provides estimates for educational purposes and should not be considered financial, tax, or legal advice. Your actual figures may vary with lender terms, fees, and market conditions.