On a $2,000 balance at 24.99% APR, the first month of interest alone is about $41.65. Making only minimum payments (the larger of $25 or 1% of the balance plus interest) takes 12 yrs 1 mo and $3,030 of interest, nearly 1.5 times the original balance.
Fixed monthly payment options
| Monthly payment | Time to pay off | Total interest | Total paid |
|---|---|---|---|
| $40 | Never | - | - |
| $60 | 4 yrs 10 mos | $1,449 | $3,449 |
| $80 | 3 yrs | $854 | $2,854 |
| $120 | 1 yr 9 mos | $482 | $2,482 |
| $160 | 1 yr 3 mos | $341 | $2,341 |
Payment needed to be done by a deadline
| Pay off in | Monthly payment needed | Total interest |
|---|---|---|
| 12 months | $190.08 | $281 |
| 24 months | $106.73 | $562 |
| 36 months | $79.51 | $862 |
The comparison with minimum payments is the main point. Small increases above the minimum change the outcome more than the rate does, because they hit the balance directly instead of being absorbed by interest.
What we assumed
- Interest is charged monthly at the APR divided by 12 on the remaining balance.
- No new purchases, fees or rate changes after the starting date.
- Minimum payment modeled as the larger of $25 or 1% of the balance plus interest. Your card issuer's formula may differ.
Related calculators: Credit Card Payoff Calculator, Personal Loan Calculator.
Questions people ask
Will my payment stay the same?
With a fixed payment, yes, but if you only pay the minimum, the required payment falls as the balance falls, which is why that path takes so long.
Is the APR on my card 24.99%?
This is an example rate close to current averages for many cards. Use your own APR from your statement in the calculator.
Estimates for general education, not financial, tax or legal advice. Real results depend on your lender, employer, tax situation and location. See the disclaimer.