Minimum payments are designed to keep you paying interest, not to get you out of debt. Here's how long it actually takes.
Most issuers set the minimum payment at the interest charged that month plus about 1% of the balance (with a floor of $25–$35). Under that common formula, a $5,000 balance at 22% APR takes about 19 years to pay off and costs about $8,100 in interest — more than the original balance.
| Balance | APR | Minimum only | Payoff time | Total interest |
|---|---|---|---|---|
| $2,000 | 22% | interest + 1% | ~11.6 years | ~$2,600 |
| $5,000 | 22% | interest + 1% | ~19.2 years | ~$8,100 |
| $10,000 | 22% | interest + 1% | ~24.9 years | ~$17,300 |
On a $5,000 balance at 22% APR, the first minimum payment is about $142. Roughly $92 of that is interest and only about $50 reduces the balance. Because the 1% portion shrinks as the balance falls, the principal paid each month stays small for years.
| $5,000 at 22% | Payoff time | Total interest |
|---|---|---|
| Minimum only | ~19.2 years | ~$8,100 |
| Fixed $150/month | ~4.3 years | ~$2,800 |
| Fixed $200/month | ~2.8 years | ~$1,750 |
| Fixed $250/month | ~2.2 years | ~$1,290 |
Moving from the minimum to a fixed $150/month cuts payoff from about 19 years to about 4 years and saves roughly $5,300 in interest. Fixing the payment at $200 saves about $6,350. The first extra dollars you add are the most valuable.
Enter your balance and rate to see how long it takes — and how extra payments help.