Minimum Payment Interest Cost Calculator
Reviewed by Hamza Gujjar, Algorithm Architect & Software Developer
Last updated: July 28, 2026Minimum Payment Interest Cost Calculator
See the real long-term cost of paying only the minimum - this calculator reveals total interest paid and time to payoff.
Formula
Simulates month-by-month amortization at the minimum payment amount, tracking cumulative interest paid until the balance reaches zero.
Example
$30,000 balance, 6% APR, $200/month minimum payment:
278 months (23.2 years) to pay off, $25,590.31 total interest paid
Why Minimum Payments Cost So Much More
Paying only the minimum required payment month after month means a much larger share of each payment goes toward interest rather than principal, especially in the early years of the loan - this is exactly why total interest paid can end up costing nearly as much as the original loan balance itself.
Small Extra Payments Change This Dramatically
Even small additional payments above the minimum can meaningfully reduce both total interest paid and time to payoff, since every extra dollar goes entirely toward principal reduction rather than being partially absorbed by that month's accruing interest.