Everyday numbers, solved
A $12,000 credit card balance at 22.99% APR takes 26 years 7 months to pay off making only the minimum payment (interest plus 1% of the balance, at least $25), costing $21,900 in total interest. Paying $720/month instead clears the same balance in 21 months with only $2,595 in interest - a savings of $19,305. Enter your own numbers below to compare.
How the interest is worked out: how to calculate credit card interest, and what paying only the minimum really costs.
Money
See the time and interest cost of paying only the required minimum.
Payoff time at the minimum
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Compare the required minimum with a higher fixed payment.
Assumes no new charges or fees. The minimum is recalculated monthly as the greater of the selected balance percentage or payment floor.
Quick answer: At 22.99% APR, a $12,000 balance builds $229.90 of interest in the first month. Paying only the minimum takes 26 years 7 months; a fixed $720 a month clears it in 21 months.
| Monthly payment | Time to pay off | Total interest |
|---|---|---|
| Minimum only (interest + 1%, first payment $349.90) | 26 years 7 months | $21,900 |
| $360 a month | 4 years 6 months | $7,309 |
| $600 a month | 2 years 2 months | $3,277 |
| $720 a month | 21 months | $2,595 |
| $1,200 a month | 12 months | $1,450 |
Assumes no new purchases or fees and a fixed APR; interest is charged monthly at APR / 12. A fixed payment pays the card off far faster than the minimum because the minimum shrinks as the balance falls. See how to calculate credit card interest and minimum payment vs paying in full.