Why does paying only the minimum balance keep me in debt?

Credit card minimum payments (usually 5% of balance) predominantly cover finance charges and taxes, paying off very little principal. At typical 40% APRs, paying only the minimum can take 15 to 25 years to clear a modest balance and cost multiple times the original debt in interest.

Credit Card Payoff Calculator

Your Debt Details

Card Balance

₹

Annual Percentage Rate (APR)

Monthly Payment

₹

Payoff Comparison

Here is how your custom payment plan stacks up against making only the minimum payments.

Metric	Minimum Payment	Your Plan
Time to Pay Off	0 months	0 months
Total Interest Paid	₹0	₹0
Total Amount Paid	₹0	₹0

Guide & Methodology

About the Credit Card Payoff Calculator

Calculate how long it will take to eliminate credit card debt and see how paying above the minimum saves thousands in interest.

What this calculator does

Determines the exact months required to become debt-free under fixed monthly payments.
Demonstrates the dangerous debt trap of only paying the minimum 5% balance each month.
Calculates cumulative interest saved by accelerating monthly payoff contributions.

How it Works & Key Inputs

Step 1

Current Card Balance

Enter total outstanding statement balance.

Step 2

Annual Percentage Rate (APR)

Input your credit card's annual interest rate (typically 36% to 42% in India, or 3% to 3.5% per month).

Step 3

Monthly Payment Plan

Specify your intended fixed monthly payment.

Core Calculation Parameters

BalanceTotal outstanding credit balance.

Interest Rate (APR %)Annualized card finance fee (typically 36%-44%).

Monthly PaymentTarget repayment sum per billing cycle.

Formula & Calculation Logic

Mathematical Model

N = -ln(1 - (B × r) / P) / ln(1 + r)

Logarithmic debt payoff equation.

Variables Breakdown

NNumber of months until debt balance reaches zero

BCurrent credit card balance

rMonthly interest rate = APR ÷ 1200

PMonthly fixed repayment amount

Frequently Asked Questions (FAQ)

Disclaimer: This calculator is provided for educational and illustrative purposes only. Actual financial outcomes may vary based on statutory changes, lender terms, fund fees, and prevailing market dynamics.