Credit Card Payoff Calculator
See what credit card minimum payments really cost you. Compare paying the bank's minimum vs. a fixed accelerated payment, and calculate thousands in saved interest.
Card Balance & Rates
• 1% of balance + monthly interest (or $25 min)
Used by major credit card issuers (Chase, Amex, Citi).
Minimum Payment vs. Fixed Plan
Track credit card spending with Kipta
Prevent card debt before it happens. Kipta alerts you to high APR charges and recurring fees automatically.
Why Minimum Payments Are Engineered to Keep You in Debt
Credit card companies make their greatest profits on finance charges. When you make only the minimum payment, nearly 80% to 90% of your payment is consumed by interest charges, leaving only pennies to chip away at the actual balance.
• Monthly Interest Accrued = ($6,000 × 24.9%) / 12 = $124.50
• 1% Principal Reduction = $6,000 × 1% = $60.00
• Total Minimum Payment = $124.50 + $60.00 = $184.50
Notice: out of a $184.50 payment, $124.50 (67%) vanishes into bank profit instantly!
Frequently Asked Questions
Will paying just the minimum hurt my credit score?
Paying the minimum protects your payment history (35% of your FICO score) from late marks. However, carrying high balances keeps your credit utilization ratio (30% of your score) elevated, which can severely depress your overall credit score.
How does Kipta help prevent credit card debt?
Kipta includes a specialized Credit Card Spending tracker that monitors your float, warns you when charges exceed available cash, and helps you keep your statement balances paid in full every month to avoid finance charges completely.
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Take control of your cards with Kipta
Track card spending, monitor statements, and avoid interest penalties without spreadsheets.