Credit Card Minimum Payment Calculator
Understand the true cost of paying only the minimum due on your credit card. See how long it takes to pay off debt and plan smarter payments.
NEVER
Debt will never be paid off
Recommended Payment
₹4,580/mo
Pay off in 3 years
Risk Level: High
| Strategy | Monthly Payment | Time to Payoff | Total Interest | Total Paid |
|---|---|---|---|---|
| Minimum Payment | ₹3,000 | Never | ₹50,38,88,92,66,290 | ₹50,38,88,93,66,290 |
| Recommended Payment | ₹4,580 | 36 months | ₹64,894 | ₹1,64,894 |
The Minimum Payment Trap
Paying only the minimum due means most of your payment goes toward interest, not principal. Your ₹1,00,000 balance will cost you ₹50,38,88,92,66,290 in interest over 50 years.
Small Increases Make Big Differences
Increasing your payment to ₹4,580 per month (₹1,580 more) can save you ₹50,38,88,92,01,396 in interest and help you become debt-free Infinity months sooner.
What is Minimum Payment?
Minimum payment is the smallest amount you must pay each month to keep your credit card account in good standing. It's typically calculated as a percentage of your outstanding balance (usually 2-5%) or a fixed minimum amount, whichever is higher.
Why Paying Only Minimum is Dangerous
When you pay only the minimum due, the majority of your payment goes toward interest charges rather than reducing your principal balance. This means:
- Your debt takes years or decades to pay off
- You end up paying 2-3x the original amount in total interest
- Your credit utilization remains high, hurting your credit score
- You remain in a debt trap with limited financial flexibility
How Interest Compounds on Minimum Payments
Credit card interest is calculated daily on your outstanding balance. When you pay only the minimum, interest continues to accrue on the remaining balance, creating a compounding effect that makes it extremely difficult to pay down the debt.
Breaking Free from Minimum Payments
The key to escaping the minimum payment trap is to pay more than the minimum, even if it's just a small amount extra. Every additional rupee you pay goes directly toward reducing your principal, which means less interest in future months.
This calculator provides educational estimates based on the information you provide. Actual results may vary based on your bank's specific calculation methods, billing cycles, and fee structures.
The calculations assume no additional purchases, consistent interest rates, and regular payments. This tool is for educational purposes only and does not constitute financial advice.
For personalized debt management strategies, please consult with a qualified financial advisor or credit counselor.