Balance: $6,715 · APR: 22.3% · Minimum Payment: $134 · Accelerated: 2× · $269/mo
Credit Card Interest Calculator
See how long your balance takes to pay off at the minimum payment, what it costs in interest, and how much faster you get out by paying more.
Your numbers
TransUnion avg: $6,715
Federal Reserve avg: 22.30%
Percentage-based minimum (2.00% of balance)
| Traditional Starting $134/mo | Accelerated 2× · $269/mo | |
|---|---|---|
| Payoff Timeline | 110 yr 10 mo | 2 yr 10 mo |
| Total Interest | $74,033 | $2,398 |
| Total Paid | $80,748 | $9,113 |
| Interest Saved | — | $71,634 |
| Time Saved | — | 108 yr |
What Your Minimum Payment Is Actually Doing
How Credit Card Interest Actually Works
Your card's APR is a yearly rate, but interest is charged monthly. The bank divides the APR by 12 and applies that rate to your balance each month. At the national average APR of 22.30%, that works out to about 1.86% a month.
Most minimum payments are about 2% of your balance. So of every minimum payment, roughly 1.86 points go to interest, and only about 0.14 points actually reduce what you owe.
On the average balance of $6,715, the first minimum payment is $134.30. Of that, $124.79 is interest. Only $9.51 goes to the balance.
Why the Minimum Payment Takes So Long
Because the minimum is a percentage of your balance, it shrinks as your balance shrinks. The payment stays just above the interest charge, so the balance barely moves.
On $6,715 at 22.30%, paying only the minimum:
| How you pay | Monthly payment | Time to pay off | Total interest |
|---|---|---|---|
| The minimum, as it shrinks | $134.30, then less | 110.8 years | $74,033 |
| Keep paying the first minimum | $134.30 fixed | 12 years | $12,595 |
| Double the minimum | $268.60 fixed | 2.8 years | $2,398 |
| Triple the minimum | $402.90 fixed | 1.8 years | $1,396 |
The biggest change doesn't come from paying a lot more. It comes from paying a fixed amount instead of letting the payment shrink. Holding the first minimum steady cuts about 99 years off the payoff.
Common Credit Card Questions
How is credit card interest calculated?
Your bank divides your APR by 12 to get a monthly rate, then charges that rate on your balance. At 22.30% APR, that's about 1.86% of your balance each month. Most issuers actually calculate it daily from your average daily balance, but the monthly figure is a close approximation.
How long does it take to pay off $5,000 making only the minimum?
At 22.30% APR with a 2% minimum ($100 to start), about 93 years, and more than $51,000 in interest. Paying a fixed $100 every month cuts that to 12 years. Paying $200 a month clears it in under 3 years with about $1,800 in interest.
What happens if I pay more than the minimum?
Every dollar above the minimum goes straight to your balance, which means less interest charged the next month. On the average balance, doubling the minimum saves more than $71,000 in interest and about 108 years of payments.
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