The true cost of paying the minimum

Is your money being sucked into a compound interest sinkhole? If you're not paying off your credit cards every month, that's just what can happen. It depends on the interest rate charged by the credit card company and whether you pay as much as you can, or just the minimum amount due.

The minimum payment on credit card debt is calculated as a percentage of your current balance. The minimum payment drops as your balance is paid, but thanks to the magic of compounding, you'll end up paying for a long, long time.

Check out how much interest you'll shell out over the life of the debt by using our calculator. Enter the information below to see the difference in time and money your payment can make!

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 What is your credit card balance? \$ What is the interest rate on your credit card? 5.9% 7% 8% 9% 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 21% 22% 23% 24% 25% 26% 27% 28% How is your minimum payment calculated? 1.5% 2% 2.5% 3.0% 3.5% 4% 4.5% 5% Your minimum payment: \$ What fixed payment could you make each month? \$ Select a payment schedule based on: Minimum payment Fixed payment

 30 yr fixed mtg 3.83% 15 yr fixed mtg 2.94% 5/1 jumbo ARM 3.33%
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