The Finance Algorithm
§ Tool · tier 1 · independent

Minimum Payment Calculator.

See how long it takes to pay off debt with minimum payments only

CalculatorFree, no signupOn-deviceupd May 2026
Inputs
Your numbers
$
$5k
%
20%
$
$100
$
$100

Additional amount above minimum

Math updates live as you change inputs · AI runs on submit

Awaiting inputs

Move the sliders or type in the form on the left — the math updates live as you go. Click Get AI verdict when you want a written analysis.

The minimum payment trap is real. Banks design minimums to maximize their interest income. This calculator shows you the shocking truth about paying only the minimum.

§ Worked examples

Real-world scenarios

Minimum Payment Trap

$5,000 balance at 20% APR, paying 2% minimum (starts at $100, decreases over time).

Inputs

balance:5,000rate:20min:2%

Time to payoff: 27 years! Total interest: $8,396. You'd pay $13,396 for a $5,000 balance. With fixed $200/month: 2.5 years, $1,364 interest.

§ FAQ

Questions Australians ask

§ Glossary

Plain-English definitions

Minimum Payment
The smallest amount you must pay monthly to avoid late fees, usually 2-3% of balance or $25.
Principal
The original amount borrowed, excluding interest. Minimum payments barely touch this.
Amortization
How payments are split between interest and principal over time.