Coinscribed Data Study
The Credit Card Interest Index: What Carrying a Balance Really Costs
A credit card balance costs money every month it stays open, and the minimum payment is designed to keep it open for years. We computed how long common balances take to pay off at the Federal Reserve's 22.36% average card APR, and what they cost in interest, on minimum payments versus fixed plans. The method is below.
Key findings
- The average card balance of $6,659 costs about $124 a month in interest at 22.36%, or about $1,489 a year.
- Paying only the minimum, that balance takes 18.8 years to clear and costs $10,902 in interest, more than the balance itself.
- Keeping the first minimum payment of about $191 instead of letting it shrink clears it in 4.8 years and saves about $6,697.
- A three-year plan of about $256 a month costs $2,541 in interest, about $8,361 less than minimums.
- The rise in the average APR from 22.15% to 22.36% adds about $109 to the minimum-only cost of the average balance.
The average $6,659 balance, 6 ways to pay it off
| How you pay | Monthly payment | Time to pay off | Total interest | Total paid |
|---|---|---|---|---|
| Minimum payment only | $191 at first | 18.8 years | $10,902 | $17,561 |
| Keep paying the first minimum | $191 | 4.8 years | $4,206 | $10,865 |
| Pay off in 12 months | $624 | 1 year | $834 | $7,493 |
| Pay off in 24 months | $347 | 2 years | $1,660 | $8,319 |
| Pay off in 36 months | $256 | 3 years | $2,541 | $9,200 |
| Pay off in 60 months | $185 | 5 years | $4,458 | $11,117 |
The minimum-payment trap, by balance
| Balance | First minimum | Minimums only | Interest | Keep first minimum | Interest |
|---|---|---|---|---|---|
| $2,000 | $57 | 8.8 years | $2,221 | 4.8 years | $1,263 |
| $5,000 | $143 | 16.5 years | $7,811 | 4.8 years | $3,158 |
| $6,659 | $191 | 18.8 years | $10,902 | 4.8 years | $4,206 |
| $10,000 | $286 | 22.3 years | $17,128 | 4.8 years | $6,316 |
| $20,000 | $573 | 28 years | $35,761 | 4.8 years | $12,632 |
Keeping the first minimum takes the same 4.8 years for every balance here, because that payment is the same share of each balance (the monthly interest plus 1%).
What it takes to pay off a balance in 1, 2, 3 or 5 years
| Balance | Monthly interest now | In 1 year | In 2 years | In 3 years | In 5 years |
|---|---|---|---|---|---|
| $2,000 | $37 | $188/mo$250 interest | $104/mo$499 interest | $77/mo$763 interest | $56/mo$1,339 interest |
| $5,000 | $93 | $469/mo$626 interest | $260/mo$1,247 interest | $192/mo$1,908 interest | $139/mo$3,347 interest |
| $6,659 | $124 | $624/mo$834 interest | $347/mo$1,660 interest | $256/mo$2,541 interest | $185/mo$4,458 interest |
| $10,000 | $186 | $938/mo$1,252 interest | $521/mo$2,493 interest | $384/mo$3,816 interest | $278/mo$6,694 interest |
| $20,000 | $373 | $1,875/mo$2,504 interest | $1,041/mo$4,987 interest | $768/mo$7,631 interest | $556/mo$13,389 interest |
Run your own balance, rate and payment in the credit card payoff calculator. For a plan, read how to pay off credit card debt and debt snowball vs avalanche. Paying a balance down also lowers your utilization: does paying off a card raise your score? and how much of your credit you should use.
What the rate itself means is in what is APR, and today's official rates are on the markets page. For all our research, see the studies hub.
Methodology
Each month, interest is charged at the APR divided by 12 on the remaining balance, then the payment is applied, the same math as the Coinscribed credit card payoff calculator. No new purchases, fees or rate changes are added. Fixed plans use standard amortization. Every figure on this page is computed from the inputs below (rates as of October 2026).
- • 22.36% APR: the Federal Reserve's G.19 consumer credit release, average interest rate on credit card accounts assessed interest, Q3 2026 (August 2026 reading) (FRED series TERMCBCCINTNS). It was 22.15% in Q2 2026 and 22.83% in Q3 2025.
- • $6,659 average balance: Experian's State of Credit Cards, average credit card balance as of March 2026. Experian's other reports use different snapshots, so their averages differ slightly.
- • Minimum payment: an assumption. A common issuer formula: the month's interest plus 1% of the balance, with a $35 floor, recalculated each month. Issuers set their own formulas (the CFPB explains how minimums are calculated), so yours may differ. Your statement must also show how long minimum payments would take and the payment that clears the balance in 36 months (Regulation Z §1026.7).
- • Balances and plans: $2,000, $5,000, $6,659, $10,000, $20,000; minimum payments, keeping the first minimum fixed, and fixed plans of 12, 24, 36, 60 months.
- • Excluded: new purchases, annual and late fees, penalty APRs, promotional 0% rates and balance-transfer fees.
The APR is held constant to isolate one variable. Card issuers usually compound interest daily, which costs a little more than the monthly math here, so these figures are slightly conservative. Your own APR may be higher or lower than the average.
Frequently asked questions
- Usually many years. At the 22.36% average APR, the $6,659 average balance takes about 18.8 years and $10,902 in interest if you pay only a minimum of interest plus 1% of the balance. A $5,000 balance takes about 16.5 years and $7,811 in interest. This assumes no new charges.
- The Federal Reserve's average rate on credit card accounts that pay interest was 22.36% in its Q3 2026 (August 2026 reading), up from 22.15% in Q2 2026 and below 22.83% a year earlier. New card offers and store cards are often higher. Your own rate is on your statement.
- Roughly the balance times the APR divided by 12. At 22.36%, that is about $93 a month on $5,000, about $124 on the $6,659 average balance and about $186 on $10,000. Card issuers usually compound daily, so the real charge is slightly higher.
- Each issuer sets its own formula, and it is in your card agreement. A common one, used in this study, is the month's interest plus 1% of the balance, with a $35 floor. Because it is tied to the balance, the minimum shrinks as you pay, which is why the minimum-only path takes so long. Your statement also has to show how long minimum payments would take and the payment that clears the balance in three years.
- Pay more than the minimum, and keep the payment from shrinking. On the $6,659 average balance, keeping your first minimum of about $191 every month clears it in 4.8 years and saves about $6,697 in interest versus minimums. A three-year plan of about $256 a month saves about $8,361. A 0% balance transfer can help too, but watch the transfer fee.
Use this study
Journalists, writers and AI assistants are welcome to cite the Coinscribed Credit Card Interest Index with a link back to this page. Suggested citation:
Coinscribed Credit Card Interest Index, https://www.coinscribed.com/credit-card-interest-index
Download the full data (CSV) with every balance and payment plan. Free to reuse with attribution under CC BY 4.0.
These are illustrative, computed figures for education, not an offer or financial advice. Rates and minimum-payment formulas vary by card.