What this calculator helps you do
Illustrate the long-term cost of paying only a percentage-based or fixed minimum on a card balance. The calculation runs entirely in your browser; SENNA Finance does not receive the values entered into this tool.
Worked example
Using the default example—card balance of $6,000, annual percentage rate of 24.99%, minimum payment percentage of 2%, minimum payment floor of $35—the calculator returns estimated payoff time of 100 years 0 months; total interest: $193,459.70; total paid: $199,459.70. Change the assumptions to match your own case rather than relying on the example.
Formula and calculation basis
Inputs are converted to the periodic units required by the formula. Results are calculated with full JavaScript numeric precision and rounded only for display.
How to interpret the result
Minimum-payment rules are designed to keep the account current, not necessarily to minimize interest or payoff time.
Common mistakes to avoid
- Assuming every issuer uses the same minimum-payment formula.
- Ignoring future purchases and fees.
- Treating the first minimum as a fixed payment for all months.
Limits and assumptions
Issuer formulas can include interest, fees, floors, and percentage rules that differ from this simplified model.
Outputs are estimates, not contractual quotations, regulated disclosures, tax advice, investment advice, or a substitute for professional review.
Frequently asked questions
Why does the minimum fall over time?
A percentage-based minimum decreases as the balance falls, subject to the entered fixed floor.
Can payoff exceed many years?
Yes. High rates and low minimums can make repayment extremely slow.
Does this model include new spending?
No. It assumes no additional purchases or cash advances.
Sources and reference context
External references provide educational context and do not imply endorsement of SENNA Finance.