Interactive infographic
Why Minimum Credit Card Payments Cost So Much
Compare paying only the minimum on a credit card with paying a fixed amount each month, and see how long it takes and how much interest you pay.
What this infographic shows
The minimum payment is designed to keep your account in good standing, not to clear the debt. Because it is mostly interest plus a small slice of the balance, it falls as the balance falls. Each month you pay a little less, so the debt shrinks more slowly.
The chart shows the balance over time for two plans:
- Coral: paying only the minimum.
- Indigo: paying the same fixed amount every month.
How to use it
- Set your balance and your card’s APR. The rate starts at 22.4%, close to the U.S. average in August 2026.
- Move the fixed payment slider and compare the two boxes.
- Find the payment that clears the card in the time you want.
Why it matters now
The holiday shopping season is when many card balances grow. Interest rates on cards stay high because they follow the Federal Reserve’s policy rate, which rose in September 2026. See also how interest rates change a loan payment.
This is an educational illustration, not financial advice. It assumes no new purchases, fees or rate changes.
Frequently asked questions
What happens if I only pay the minimum on my credit card?
You avoid late fees, but most of each payment goes to interest. A $5,000 balance at about 22% can take close to 20 years to pay off this way and cost more in interest than the original balance.
How is the minimum payment calculated?
Each card issuer sets its own formula. A common one is the month's interest plus 1% of the balance, with a floor such as $25. Your statement shows your card's minimum.
What is the average credit card interest rate?
22.36% in August 2026 for accounts that were charged interest, and 21.19% across all accounts, according to the Federal Reserve's G.19 consumer credit report.
What is the fastest way to pay off credit card debt?
Pay a fixed amount that is well above the minimum every month, and stop adding new purchases. Paying the card with the highest rate first saves the most interest.
Sources
Text version of this infographic
Why minimum payments cost so much
Compare paying only the minimum with paying a fixed amount every month. No new purchases are added.
Card balance
Interest rate (APR)
Fixed monthly payment
Minimum payment here is the month's interest plus 1% of the balance, or $25, whichever is more. Cards differ, so check your statement.
Minimum only
Time to pay off
Interest paid
Fixed payment
Time to pay off
Interest paid
Today
Balance, minimum only
Balance, fixed payment