How the minimum is set
Card issuers set their own minimum payment formulas, and they vary. A common one is 1% of the balance plus that month's interest, with a floor such as $25. This page uses that formula by default and lets you change each part. On $5,000 at 22.15% APR, the first minimum is $142.29: $92.29 of interest and $50 toward the balance.
Why it takes so long
The minimum shrinks as the balance shrinks. That feels like relief each month, but it means the payment never gets ahead of the debt quickly. Paying only the minimum, the $5,000 example takes 231 months (about 19.2 years) and costs about $8,159 in interest, so you'd pay about $13,159 in total. After 10 years, about $1,497 is still owed.
The fixed-payment comparison
A fixed payment doesn't shrink. The payment that clears $5,000 at 22.15% in 36 months is about $191.34, with about $1,888 in interest. That's $49 more per month than the first minimum, and it saves 195 months and over $6,200. Enter your own fixed amount to compare. If a fixed payment is less than a month's interest, the balance never goes down, and the page says so.
The warning box on your statement
Under the CARD Act, card statements include a minimum payment warning (Regulation Z §1026.7(b)(12)). It shows how long payoff takes with minimum payments only, the total cost, and the monthly payment needed to pay off the balance in three years. This calculator does the same kind of math so you can play with the inputs.
Where the APR comes from
The default 22.15% is the Federal Reserve's G.19 average APR for credit card accounts that were charged interest, from the Sep 8, 2026 release. Your card's rate may be higher or lower; it's on your statement.
Simplifications
Real cards charge interest daily on your average daily balance; this page uses APR ÷ 12 monthly, as the video did (see the daily interest calculator for the daily version). It assumes no new charges, no fees and no rate changes.
Sources
- Federal Reserve: G.19 Consumer Credit
- Regulation Z §1026.7 (periodic statement, minimum payment warning)
- CFPB: Credit cards
Last reviewed: Sep 28, 2026