Why does my balance barely shrink even though I'm making payments?

Credit card interest compounds monthly, so a large chunk of a minimum payment goes straight to interest before anything touches the principal — at a 25% APR on a $4,000 balance, you're accruing roughly $83 in interest every month before your payment even counts. The lower your payment is above that interest floor, the longer it takes for principal to actually drop.

What does "this balance will never be paid off" mean?

It means your monthly payment is at or below the interest charged that month, so the balance stays flat or grows forever no matter how long you keep paying — this is a real trap on high-APR cards with low fixed minimum payments, and the fix is simple: pay more than the interest amount shown.

How is this different from a minimum-payment calculator?

Minimum payments on real cards are usually a small percentage of the balance (so they shrink every month as the balance drops), while this tool assumes a fixed dollar amount every month, which is usually the better strategy since it pays down principal faster and finishes on a predictable date.

Does this account for new purchases added to the card?

No — it models paying off an existing balance with no new spending, which gives you the cleanest picture of what that balance alone will cost. Adding new charges each month will extend the payoff timeline and increase total interest beyond what's shown here.

CREDIT CARD INTEREST CALCULATOR

See exactly how much a credit card balance will cost you in interest, and how long it'll take to pay off.

Current balance ($)

APR (%)

Monthly payment ($)

Time to pay off	40 months (3 yrs 4 mo)
Total interest paid	$1898.34
Total paid (principal + interest)	$5898.34

How to calculate credit card interest

1
Enter your current balance, the card's APR, and the fixed amount you plan to pay each month.
2
The calculator compounds interest monthly against your remaining balance and simulates each payment until it's paid off.
3
Read the total months to pay off, the total interest you'll pay, and the grand total — or a warning if your payment doesn't even cover the monthly interest.

Questions

Why does my balance barely shrink even though I'm making payments?: Credit card interest compounds monthly, so a large chunk of a minimum payment goes straight to interest before anything touches the principal — at a 25% APR on a $4,000 balance, you're accruing roughly $83 in interest every month before your payment even counts. The lower your payment is above that interest floor, the longer it takes for principal to actually drop.
What does "this balance will never be paid off" mean?: It means your monthly payment is at or below the interest charged that month, so the balance stays flat or grows forever no matter how long you keep paying — this is a real trap on high-APR cards with low fixed minimum payments, and the fix is simple: pay more than the interest amount shown.
How is this different from a minimum-payment calculator?: Minimum payments on real cards are usually a small percentage of the balance (so they shrink every month as the balance drops), while this tool assumes a fixed dollar amount every month, which is usually the better strategy since it pays down principal faster and finishes on a predictable date.
Does this account for new purchases added to the card?: No — it models paying off an existing balance with no new spending, which gives you the cleanest picture of what that balance alone will cost. Adding new charges each month will extend the payoff timeline and increase total interest beyond what's shown here.