Credit card payoff
How long minimum payments really take, and what an extra $50 a month changes.
54 payments of $150.00
60% on top of the balance
$3.18 a day
Minimum payments only
2% of the balance, floor $25.00
The minimum falls as the balance does, which is precisely why it takes so long. Paying a fixed amount — even the same amount as today's minimum — clears the debt dramatically faster.
What an extra payment does
| Monthly payment | Time to clear | Total interest | Interest saved |
|---|---|---|---|
| $150.00 | 4y 5m | $3,021.57 | — |
| $200.00 (+$50.00) | 2y 10m | $1,859.39 | $1,162.18 |
| $250.00 (+$100.00) | 2y 1m | $1,357.64 | $1,663.93 |
| $350.00 (+$200.00) | 1y 5m | $893.43 | $2,128.14 |
How it works
Credit card interest compounds monthly on whatever balance remains. The payoff time is the number of periods at which the payments finally exhaust the balance.
n = −ln(1 − (B · i) / P) / ln(1 + i)
B = balance i = APR ÷ 12 P = monthly payment The minimum payment trap
Minimums are typically 1–3% of the balance with a small floor. Because they shrink as the balance shrinks, the final stretch crawls. A $5,000 balance at 23% APR paid at the minimum takes decades and can cost more in interest than the original debt. Paying a fixed amount instead — even today's minimum, frozen — often halves the time.
The break-even payment
If your payment is below one month's interest, the balance grows no matter how long you keep paying. That threshold is $95.42 at your current balance and rate — the absolute floor before any progress happens at all.
Snowball or avalanche?
With several cards, paying the highest APR first (avalanche) minimises total interest. Paying the smallest balance first (snowball) costs slightly more but produces a visible win sooner, and evidence suggests people stick with it more often. The mathematically optimal plan you abandon is worse than the slightly suboptimal one you finish.