Minimum Due Trap Calculator
A month-by-month simulation of what happens if you only ever pay the minimum due.
A credit card statement shows two numbers side by side: the total amount due and a much smaller "minimum amount due". Because the minimum is the number that keeps your account in good standing and avoids a late-payment fee, it is easy to treat it as the normal payment. But interest keeps building on the entire outstanding balance, and you lose the interest-free period on new purchases while you carry a balance. Since the minimum is typically a small percentage of what you owe, most of each payment goes to interest and the balance shrinks very slowly.
The default inputs show how slowly. On ₹50,000 at 3.5% a month with a 5% minimum due (floor ₹500), the first month's interest is ₹1,750 and the minimum payment is ₹2,500, so only ₹750 reduces what you owe. At that pace the balance takes 142 months — nearly 12 years — to clear, and you pay ₹1,00,832 in interest, about twice the amount you originally owed. If the minimum-due percentage is lower than the monthly interest rate, the balance never falls at all; try setting it to 3% against the default 3.5% rate.
The simulation assumes no new purchases, fees, or GST, and charges interest monthly on the full outstanding balance. Real issuers usually calculate interest daily, so your statement will differ.
Card Details
Typical credit card rates are 3–3.75% per month.
Months to Clear: 0
This balance never clears at these settings
This is an estimate, not an offer. The figures above are indicative calculations based on the numbers you entered and standard industry formulas/rules of thumb. They are not a loan/insurance quote, a pre-approval, or a guarantee of approval by any bank, NBFC, or insurer. Actual eligibility, interest rate, premium, and approval are decided solely by the lender/insurer after their own underwriting and verification.
Month-by-Month Simulation
| Month | Opening Balance | Interest | Min Due Paid | Closing Balance |
|---|
How to Break the Cycle
The figures below use the same ₹50,000 balance and 3.5% monthly rate as the defaults above.
| Payment approach | Months to clear | Total interest |
|---|---|---|
| Minimum due only (5% of balance, floor ₹500) | 142 | ₹1,00,832 |
| Fixed ₹5,000 every month | 13 | ₹12,633 |
| Fixed ₹10,000 every month | 6 | ₹5,961 |
- Stop adding to the balance. Pause new spending on the card, or switch to another payment method, until the balance is cleared.
- Pay a fixed amount above the minimum. A fixed payment does not shrink as your balance shrinks, which is what makes it so much faster than paying the minimum.
- Compare cheaper ways to refinance the balance. A personal loan or your issuer's EMI-conversion option can carry a much lower rate than a card. As an illustration, ₹50,000 at 14% a year over 12 months is an EMI of ₹4,489 and ₹3,872 in total interest. Rates, processing fees, and approval vary, so check the full cost first — the Personal Loan EMI Calculator can help.
- Clear the most expensive debt first if you owe on more than one card or loan.
- Pay the full statement from then on. This restores the interest-free period on new purchases.
If you cannot keep up with payments, contact your card issuer early to ask about your options.
Frequently Asked Questions
Why does paying only the minimum due cost so much more?
Credit card interest is charged monthly on the entire outstanding balance (often 3–4% per month, which compounds to 40%+ annually). Paying only the minimum due means most of your payment goes toward interest, so the principal barely shrinks — this simulation shows exactly how long that takes and how much extra interest you pay.
What if my minimum due payment doesn’t even cover the interest?
If your outstanding balance is high enough relative to the minimum-due percentage and floor amount, the interest charged each month can exceed your payment — meaning your balance never shrinks. The calculator flags this "never clears" scenario explicitly.
What should I do instead of paying only the minimum?
Pay as much above the minimum as you can afford, or consider a personal loan at a much lower interest rate to pay off the card balance — see our Personal Loan EMI Calculator.