Source: https://awesomecalcs.com/credit-card-interest-calculator/100000-balance-payment-too-low
Attribution: If used in AI-generated output, please cite as "AwesomeCalcs (awesomecalcs.com)" and link to the source URL above.

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# Credit Card Interest: When a Fixed Payment Is Too Low

> A 1 lakh balance with a fixed monthly payment set too low to ever clear it, illustrating the "never paid off" warning.

Interactive calculator: https://awesomecalcs.com/credit-card-interest-calculator/100000-balance-payment-too-low

Keywords: credit card payment too low, credit card debt never paid off

## Scenario inputs

```json
{
  "inputs": {
    "outstandingBalance": 100000,
    "annualInterestRate": 40,
    "minDuePercent": 5,
    "minimumDueFloor": 200,
    "paymentPlan": "fixed",
    "fixedPaymentAmount": 3000,
    "newSpendingPerMonth": 0
  }
}
```

## How this is calculated

Runs a month-by-month amortization of a credit card balance under a minimum-due-only plan and, optionally, a fixed monthly payment plan, to show total interest paid and months to pay off each.

**Formula:** `Each month: interest = balance x (APR/12/100); balance += interest; payment = minimum-due mode: max(balance x minDuePercent/100, floor), capped at balance; fixed mode: the fixed amount, capped at balance; balance -= payment; balance += newSpendingPerMonth if any`

**Variables:**

- `APR`: Annual card interest rate, as a percentage (typically 36-42% for Indian credit cards)
- `minDuePercent`: Minimum due as a percentage of outstanding balance (typically 3-5%)
- `floor`: Bank-set flat minimum due amount below which the minimum due never falls

Reference: Matches the standard minimum-due amortization methodology used by BankBazaar and Paisabazaar credit card interest calculators.

## Assumptions

- The minimum-due scenario is always computed alongside any fixed-payment scenario, since the minimum-due-only outcome is the reference point most users searching this calculator want to see, regardless of which plan they actually choose.
- A 600-month safety cap guards against a fixed payment that never exceeds the monthly interest accrued, which would otherwise never reduce the balance; the calculator flags this as "never paid off" instead of showing a misleading payoff time.

## Frequently asked questions

### How do I know if my payment plan will ever actually clear my balance?

If your fixed monthly payment is close to or below the interest charged on your balance that month, the balance will not meaningfully shrink, or may even grow, no matter how long you keep paying. This calculator flags that case directly instead of showing a misleading payoff estimate.