Minimum Payment Trap Time Calculator

Starting Balance

APR (%)

Minimum Payment Rule Common settings: 2% with $25 floor or interest + 1% with $25 floor.

Percent of Balance (%) Used for “Percent of balance with floor”.

Principal Portion (%) Used for “Interest + percent of principal with floor”.

Dollar Floor (minimum due)

Optional Extra Paid Each Month

Setting a small extra (e.g., $20) often slashes years off repayment.

FAQs

1) What is the “minimum payment trap”?

It’s the situation where paying only the minimum due keeps you in debt for years, because most of the payment goes to interest and barely reduces principal.

2) Which rule should I choose for the minimum due?

Card issuers typically use either a fixed percent of balance with a dollar floor, or monthly interest plus a small percent of principal with a floor. If unsure, check your statement.

3) Why do I get a negative-amortization warning?

That alert appears when your payment is less than or equal to the monthly interest charged. In this case, the balance grows instead of shrinking and payoff never occurs.

4) How accurate is the payoff time?

The model compounds interest monthly and assumes fees and rate changes do not occur. Real statements may differ slightly due to compounding conventions and rounding.

5) What does the “Dollar Floor” do?

It’s the minimum amount the lender requires even when the percent-based amount is small. A higher floor usually accelerates payoff by forcing larger payments early on.

6) Can I see the effect of paying a bit extra?

Yes. Enter an amount in the “Optional Extra” field. Even a modest, consistent extra (for example, $20) can remove years from the timeline and cut total interest.

7) Why does the schedule show only the first rows?

Very long timelines can produce thousands of rows. To keep the page responsive, the calculator shows the first 200 lines and always includes the final payoff line.