Pay only the minimum on a $5,000 card at 22.36% APR and the interest tops $8,000

That is the average rate US banks charged on card accounts that paid interest in August 2026 (Federal Reserve G.19). Guess how long the debt lasts, then change every number yourself.

1. Your guess

Balance $5,000. Each month you pay the minimum: the month's interest plus 1% of the balance, never less than $25. (A common structure; your issuer's rule may differ.) No new purchases.

How long until it is paid off?10 years

2. Run your own numbers

Card balance

Interest rate (APR)

Time in debt

Total interest

Total you pay

Share that is interest

Minimum only

Same balance and rate, different fixed payments

3. The rate itself: what history says

tap the chart or drag the slider

Card APR (accounts assessed interest)Federal funds rate

Card APR

Fed funds rate

Gap

$5,000, minimum only

Sources and data dates

Card APR: Board of Governors of the Federal Reserve System, G.19 Consumer Credit, "Commercial Bank Interest Rate on Credit Card Plans, Accounts Assessed Interest" (FRED series TERMCBCCINTNS). Quarterly survey values for Feb, May, Aug and Nov, 1994-11 to 2026-08, 128 points. Latest: Aug 2026 = 22.36%. fred.stlouisfed.org/series/TERMCBCCINTNS
Federal funds rate: effective federal funds rate, monthly average (FRED series FEDFUNDS), same months. Aug 2026 = 3.63%. fred.stlouisfed.org/series/FEDFUNDS
Revolving consumer credit outstanding, seasonally adjusted: $1,352.4 billion in Aug 2026 (FRED series REVOLSL, from G.19, release of 7 Oct 2026, preliminary). federalreserve.gov/releases/g19/current
Data was fetched from FRED (the St. Louis Fed mirror of the Federal Reserve data) on 24 Oct 2026. The balance, the payment rule (interest + 1% of balance, $25 floor) and the fixed payments are scenario inputs of this page, not published figures. Interest is compounded monthly at APR/12; no fees, no new purchases. This is an illustration, not financial advice.