How to see the cost of minimum payments
Model the balance month by month.
1
Enter the balance and APR
Use the current statement balance and purchase rate.
2
Set the minimum formula
Check the statement for the percentage and the floor amount.
3
Test an extra payment
Adding even a small fixed amount usually shortens the payoff sharply.
What does this tool do?
A percentage-based minimum shrinks as the balance falls, so payoff can take years. Fixed payments above the minimum clear the balance much faster.
The Formula
Minimum = Max(Floor, Balance × Minimum %); payoff simulated month by month with monthly interestFrequently Asked Questions
Why does the payoff date keep moving?
Because the minimum is a percentage of a falling balance, so the payment falls too. A fixed payment avoids that slowdown.
Does this include new spending?
No. New purchases and fee changes will extend the payoff period.