Paying $250 against $400
250 gives 2 yr 8 mo. 400 gives 1 yr 6 mo — a difference of 1 yr 2 mo less (-44.8%).
A bigger fixed payment shortens the term more than proportionally, because less of each one goes to interest.
| Input | 250 | 400 |
|---|---|---|
| Balance(usd) | 6,000 | 6,000 |
| APR(percent) | 22.5 | 22.5 |
| Monthly payment(usd) | 250 | 400 |
| Months to clear | 2 yr 8 mo | 1 yr 6 mo |
Balance remaining, side by side
Every figure, both ways
| Step | 250 | 400 | Difference |
|---|---|---|---|
| Interest in the first month | 112.5 | 112.5 | 0 |
| Months to clear(months) | 32.18 | 17.78 | -14.41 |
| Total paid | 8,045.66 | 7,111 | -934.66 |
| Total interest | 2,045.66 | 1,111 | -934.66 |
Questions people actually ask
- Does raising monthly payment change the answer in proportion?
- No, and that is the point of putting them side by side. Monthly payment changes by 60% while months to clear changes by 45% in the opposite direction. The step table below shows which line breaks the proportion.
- What is held constant between the two columns?
- Everything except monthly payment: balance, apr. That is what makes the difference attributable — change two things at once and neither column tells you which one moved the answer.
- Can I compare my own two numbers?
- Yes, from the address bar: add ?a.payment=… and &b.payment=… to set each side, and a parameter without a prefix sets both at once. The page is computed per request, so any pair works — these two are only the ones worth a link.
Change either side by adding query parameters — ?a.payment=… and b.payment=…. A parameter without a prefix sets both sides at once. Source: CFPB — credit card payoff and minimum payments, Federal Reserve G.19 — credit card interest rates