What is the minimum payment on a credit card?

Credit card minimum payments are typically 1–2% of the outstanding balance, or $25–$35 (whichever is greater). On a $5,000 balance, the minimum might be $75–$100. Paying only minimums is extremely expensive — most of the payment goes to interest rather than reducing your balance.

How long does it take to pay off credit card debt?

It depends entirely on your APR and payment amount. A $5,000 balance at 20% APR paid at $150/month takes about 50 months with $2,500 in interest. At $300/month, it takes 20 months with $870 in interest. Doubling your payment more than halves the time and interest.

Should I use a balance transfer to pay off credit card debt?

A balance transfer to a 0% intro APR card can be very effective if you commit to paying off the balance before the intro period ends (usually 12–21 months). Watch for balance transfer fees (typically 3–5% of transferred amount) and ensure you can pay off the balance before the promotional rate expires.

What is a good credit card APR?

In 2025, average credit card APRs are around 20–21%. Below 15% is considered good; below 10% is excellent. If you're paying above 20% APR on a card you can't pay off monthly, consider a balance transfer or personal loan to consolidate at a lower rate.

Does paying more than the minimum help my credit score?

Yes, indirectly. Paying more than the minimum reduces your credit utilization ratio (balance / credit limit), which is the second most important factor in your credit score. Keeping utilization below 30% — ideally below 10% — positively impacts your score.

Credit Card Payoff Calculator

See your payoff date and total interest for your credit card. Compare fixed monthly payments vs. minimum-only payments.

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Annual Interest Rate / APR (%)

Fixed Monthly Payment ($)

Credit Card Payoff Summary

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Months to Payoff—

Total Interest Paid—

Min. Payment Interest (30 yrs)—

Interest Saved vs. Minimum—

The Truth About Credit Card Minimum Payments

This credit card payoff calculator exposes the hidden cost of minimum-only payments — one of the most dangerous financial traps millions of Americans fall into. Enter your balance, APR, and monthly payment to see your exact payoff date and interest cost, and how much you save by paying more than the minimum.

How Minimum Payments Work

Credit card minimum payments are designed to maximize the interest you pay, not to help you pay down your balance. Typically 1–2% of your balance (or $25–$35, whichever is greater), minimums barely cover the interest charge. Your balance barely decreases each month, keeping you in debt for years or decades.

The Real Cost of a $5,000 Balance

At 20.99% APR with a starting minimum around $100: paying only minimums takes approximately 28 years and costs over $8,500 in interest — more than the original balance. At a fixed $200/month: paid off in 35 months with about $1,400 in interest. A fixed $300/month: paid off in 21 months with about $800 interest. Pay more, pay faster, save thousands.

Balance Transfer Strategy

A 0% balance transfer card can eliminate interest for 12–21 months, allowing 100% of your payment to reduce principal. On a $5,000 balance at 0% with $300/month: paid off in 17 months at $0 interest (vs. $800+ at 20.99%). Watch for balance transfer fees (3–5%) and ensure you can pay off the balance before the promo rate expires.

Credit Card Payoff Calculator — FAQs

Credit card minimum payments are calculated to barely cover interest, meaning your balance barely decreases. Paying only minimums on a $5,000 balance at 21% APR can take 28+ years and cost more in interest than the original debt. Always pay significantly more than the minimum.

At 20.99% APR: $150/month = 52 months ($2,600 interest), $200/month = 35 months ($1,400 interest), $300/month = 21 months ($800 interest). Doubling your payment cuts both time and interest roughly in half. The faster you pay, the less the interest compounds.

A 0% intro APR balance transfer can be excellent if: (1) you can pay off the balance before the promo period ends (usually 15–21 months), (2) the balance transfer fee (3–5%) is less than the interest you'd pay otherwise, and (3) you stop using the old card to avoid new debt.

You'll pay interest on an ever-shrinking balance for years. On $5,000 at 21% APR, minimum-only payments can take 25–30 years and cost over $8,000 in interest. The CARD Act requires your statement to show how long minimum-only payments would take — check that disclosure on your bill.

Any APR above 20% is very high. In 2025, average credit card APRs are around 20–21%. If you carry a balance at 25%+ APR, strongly consider a balance transfer to 0% or a personal loan at a lower rate to consolidate. If you pay your balance in full monthly, APR doesn't matter.