The True Cost of Paying the Minimum

If you’re wondering how long it will take you to pay off your credit card balance if you just pay off those low minimum payments each month, offers a calculator to help you understand the true cost.

These days, your minimum payment is typically determined by interest due plus 1% of your balance.

By just paying the depreciating minimum each month, you’ll be amazed at how many months (or years!) it will take you to pay off your balance – and at how much extra you’ll pay in interest along the way!

Instead, try to turn that first monthly minimum payment into a fixed payment for each subsequent month, and watch the number of months and extra interest payments shrink!

To use’s calculator, go to their website and click on the “Calculators” tab.


About cozbycpa

Heather L. Cozby is a CPA on the South Shore and Cape Cod. The managing partner of Cozby & Company, LLC, Heather has the resources and experience necessary to provide quality professional services on a timely basis and at a reasonable cost. She specializes in tax planning & preparation; audit, review & compilation services; management advisory services; bookkeeping; and accounting. Her unique niche is in working with homeowners’ associations and condominium trusts, advising with rental real estate, and providing outsourced financial consulting for mid-sized companies. She is more entrepreneurial than most accountants, and offers the best of both worlds - providing the services of a larger firm while retaining the ability to connect with her clients on a personal level.
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