Sources reviewed October 5, 2026. Simulations run month by month with the same engine as our minimum payment calculator; method and sources at the bottom. Journalists: cite any figure with attribution, or ask us for your exact scenario (hello@moneycrunchlab.com).
Two observed benchmarks and one modeled result
- $1,357.2 billion — U.S. revolving consumer credit outstanding, July 2026 (Federal Reserve G.19, seasonally adjusted, preliminary).
- 22.15% — average APR on credit card accounts actually assessed interest, May 2026 (G.19). Across all accounts: 20.94%.
- 163% — interest paid as a share of the original $5,000 balance when repaying at the minimum (our simulation, formula below).
Minimum-only payoff, by balance
APR: 22.15% (G.19 average, May 2026). Minimum modeled with one common issuer formula — monthly interest + 1% of the balance, $25 floor — with no new charges.
| Balance | First minimum payment | Time to pay off | Total interest | Interest as % of balance |
|---|---|---|---|---|
| $1,000 | $28 | 5 yrs 11 mos | $775 | 78% |
| $2,000 | $57 | 11 yrs 8 mos | $2,621 | 131% |
| $5,000 | $142 | 19 yrs 3 mos | $8,159 | 163% |
| $10,000 | $285 | 25 yrs 0 mos | $17,388 | 174% |
| $15,000 | $427 | 28 yrs 4 mos | $26,617 | 177% |
The payoff time grows much faster than the balance, because the minimum payment shrinks as the balance shrinks. That declining payment can keep an account revolving long after the original purchases were made.
The same $5,000, by APR
| APR | Time to pay off (minimum only) | Total interest |
|---|---|---|
| 18.00% | 18 yrs 6 mos | $6,539 |
| 20.00% | 18 yrs 10 mos | $7,317 |
| 22.15% (average) | 19 yrs 3 mos | $8,159 |
| 24.99% | 19 yrs 8 mos | $9,278 |
| 29.99% | 20 yrs 5 mos | $11,264 |
What a fixed payment changes
In this scenario, keeping a fixed payment above the modeled minimum reduces interest and repayment time. It requires a higher monthly outlay: on $5,000 at 22.15%:
| Strategy | Time to debt-free | Total interest |
|---|---|---|
| Minimum only | 19 yrs 3 mos | $8,159 |
| Fixed $200/month | 2 yrs 10 mos | $1,768 |
| Fixed $250/month | 2 yrs 2 mos | $1,298 |
The fixed $200 payment saves $6,391 in interest and 16 years 5 months versus the minimum. Run your own balance and APR in the minimum payment calculator, or compare payoff strategies across several cards with the snowball vs. avalanche calculator.
Before applying this example to your card
Check your statement and card agreement for the minimum-payment formula, applicable APRs, fees, and promotional-rate expiry. Compare the statement’s repayment disclosure with this model. Multiple rate balances, new purchases, or a different minimum formula can change the result substantially. A fixed payment must still cover the amount your issuer requires each month and fit your budget; these tables do not replace your account-specific disclosure.
Methodology & sources
- Simulation: month-by-month, minimum = monthly interest + 1% of the current balance with a $25 floor (one common U.S. issuer model), no new charges, no fees. Same engine as our public calculator; totals rounded to the nearest dollar.
- Average APRs and revolving credit: Federal Reserve, Consumer Credit — G.19, release of September 8, 2026 (revolving credit: July 2026; latest available card rates: May 2026).
- Actual issuer minimums are account-specific: some use a flat percentage or other terms. The CFPB’s minimum-payment disclosure guidance likewise requires issuers to calculate disclosures from the formula that applies to the account. Individual results depend on the exact APR, formula, fees, and any new spending.
- Page last reviewed: October 5, 2026. Figures re-checked at each G.19 release.
Cite as: “MoneyCrunchLab simulation at the Federal Reserve G.19 average credit card APR for May 2026, reviewed October 2026.”