The true cost of
"just paying the minimum."
Enter your balance and APR to see exactly how long minimum payments take — and how much they really cost you.
Your card details
Most issuers add about 1% of your balance on top of the month's interest.
Minimum payment is never less than this, even as the balance shrinks.
Minimum payment results
The minimum payment math trap.
The example below shows why minimum payments feel manageable but are financially devastating over time.
$4,750 in interest savings — just by paying $150 instead of the shrinking minimum. The calculator above shows these exact numbers for your balance and APR.
The minimum payment on common balances.
Here’s the first minimum payment, payoff time, and total interest at a typical 22% APR — using the standard formula (this month’s interest plus 1% of the balance, with a $35 floor). The bigger the balance, the longer minimum-only payments drag on.
Figures assume a 22% APR and a minimum of this month’s interest + 1% of the balance ($35 floor). Your card’s real terms are on your statement — enter them in the calculator above for your exact numbers. Carrying a balance like this? The debt payoff calculator and balance-transfer math show faster ways out.
Why the minimum shrinks over time.
Most cards set the minimum at this month's interest plus about 1% of what you owe, with a flat floor (around $35). As you pay the balance down, both pieces shrink. Sounds nice. It isn't.
When the balance is $5,000 your minimum is about $143. When it falls to $2,000 it's about $57. When it falls to $800 it drops to the $35 floor — at that point you're paying barely more than interest each month, and the balance barely moves.
This is intentional. The bank's minimum payment formula is designed to maximize the interest you pay over time — not to help you get out of debt. A fixed payment, even slightly higher, breaks the cycle.
How different banks set your minimum.
Almost every major US card uses one of two formulas. The common one today is this month’s interest plus about 1% of your balance, with a flat floor (around $35) so the payment never falls to nothing. A few cards instead charge a flat percentage of the balance (usually 2–3%).
Visa and Mastercard don’t set your minimum. They’re payment networks, not lenders — the bank that issued your card (Chase, Citi, your credit union) decides the formula. So “Visa minimum payment” really comes down to your issuer’s cardholder agreement.
Formulas change and vary by card — always confirm yours in your cardholder agreement. Whatever your issuer uses, the calculator above models it: switch between “interest + % of balance” and a fixed amount, and set your own floor.
A faster strategy.
Compute your full debt-free date
Enter all your cards, pick a strategy, and see exactly when each one is paid off — and how much total interest you'll save.
Debt payoff calculator →Auto-split every payment into principal & interest
Connect your bank and LazeeFish records every card payment, splitting it into the exact principal and interest breakdown automatically.
Debt tracker app →Minimum payment questions.
How is the credit card minimum payment calculated?
Typically the higher of: (a) this month's interest plus about 1% of your balance, or (b) a flat floor (around $35). This means the minimum payment shrinks as your balance decreases — which is exactly what makes it a debt trap.
How long does it take to pay off $5,000 with minimum payments?
On a $5,000 balance at 22% APR, making only the minimum payment (this month's interest plus 1% of the balance), it takes about 16 years and costs roughly $7,548 in interest — paying back about $12,548 total on a $5,000 debt.
What happens if I pay more than the minimum?
Even a modest increase makes a dramatic difference. Paying $150/month fixed on that same $5,000/22% APR card pays it off in about 4 years and saves over $4,800 in interest compared to minimum-only payments.
Does paying only the minimum hurt your credit score?
No, paying the minimum keeps your account current. But your credit utilization (balance divided by limit) stays high, which does negatively affect your score over time. Paying the balance down faster improves utilization and your score.
What's the fastest way to pay off credit card debt?
The avalanche method (highest APR first) minimizes total interest. The snowball method (smallest balance first) provides psychological wins. Use the debt payoff calculator to compare both for your specific balances. LazeeFish computes both strategies with your real balances and tracks your progress automatically.
Stop making minimum payments.
Make a plan.
See exactly when each card is paid off and how much total interest you'll save — with the full debt payoff calculator.