Credit Card Interest Calculator
Minimum Payment Trap
See how long it takes to pay off a balance with minimum payments only
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Fixed Payment Payoff
Calculate payoff time and interest with a fixed monthly payment
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Formula
Months to payoff = -ln(1 - (balance x monthly rate) / payment) / ln(1 + monthly rate). Total interest = (payment x months) - balance
Frequently Asked Questions
Why is the minimum payment trap so costly?
Minimum payments (typically 2% of balance or $25) barely cover interest, so most of your payment goes to interest rather than principal. A $5,000 balance at 25% APR with minimum payments can take 30+ years and cost over $8,000 in interest.
How is credit card interest calculated?
Credit card interest is typically calculated daily using the Daily Periodic Rate (APR / 365) multiplied by your average daily balance. Interest compounds monthly when the balance is not paid in full.
How can I reduce credit card interest costs?
Pay more than the minimum, transfer to a 0% APR card, negotiate a lower rate, use the debt avalanche method (pay highest APR first), or consider a personal loan at a lower rate for consolidation.
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