Debt Minimum Payment Trap Calculator

Minimum payments often shrink as balance declines, which slows principal reduction. At high APR, a large share of each payment goes to interest early on. That combination extends payoff time and inflates total interest paid, even when monthly payments seem manageable.

Even modest extras can significantly reduce payoff time because they go directly to principal once minimum obligations are covered. A recurring extra payment compounds the benefit month after month, often saving both years of repayment and substantial interest.

Use the mode that matches your lender rule. If you are unsure, check your statement language and run both modes as a sensitivity check. The difference can be meaningful, especially when balances decline and floor amounts begin to dominate payment behavior.

No. The model assumes no additional charges during payoff. If you continue spending on the account, payoff time and interest can increase materially. For realistic planning, freeze new card spend in your modeled scenario.

This version uses a fixed APR assumption for clarity. If your rate is variable, run separate cases with lower and higher APR values to bound likely outcomes. Scenario ranges are better than relying on one static rate assumption.

Use it to quantify urgency and set a concrete extra-payment target. Then compare that target against cash flow and other priorities. If the minimum-only path is too expensive, choose an automatic monthly accelerator and revisit results quarterly.