Paying $200 a month on a $5,000 balance at 20% APR takes 33 months and costs $1,522 in interest.
| Balance | $50/month | $75/month | $100/month | $150/month | $200/month | $300/month | $500/month |
|---|---|---|---|---|---|---|---|
| $1,000 | 25 | 16 | 12 | 8 | 6 | 4 | 3 |
| $2,000 | 67 | 36 | 25 | 16 | 12 | 8 | 5 |
| $3,000 | — | 67 | 42 | 25 | 18 | 12 | 7 |
| $4,000 | — | 133 | 67 | 36 | 25 | 16 | 9 |
| $5,000 | — | — | 109 | 50 | 33 | 20 | 12 |
| $7,500 | — | — | — | 109 | 60 | 33 | 18 |
| $10,000 | — | — | — | — | 109 | 50 | 25 |
| $15,000 | — | — | — | — | — | 109 | 42 |
| $20,000 | — | — | — | — | — | — | 67 |
How it is computed
Month by month: interest = balance × APR ÷ 12 is added, then the fixed payment is subtracted, until the balance reaches zero. A dash means the payment does not cover the monthly interest, so the balance never falls. No new purchases are assumed.
FAQ
What does a dash mean?+
The payment is smaller than or too close to the monthly interest charge, so the debt never gets paid off at that rate.
Why does a small increase in payment save so much time?+
Everything above the interest charge goes to principal, so a few extra dollars can double the amount that actually reduces the debt.