Unpack Money Research
The Cost of Carrying $5,000 in Credit Card Debt, by APR
Credit card APRs look abstract until you attach them to a balance and a payment. We ran a $5,000 balance through five APRs — 15%, 18%, 21%, 24%, and 29.99% — with the same fixed $150 monthly payment and no new charges. The difference between the cheapest and priciest path is $4,369 in interest and nearly two and a half extra years in debt.
Key findings
- At 29.99% APR, interest ($5,878) exceeds the original $5,000 debt — you pay for the balance twice.
- Moving from 24% to 15% APR saves $1,813 in interest and clears the debt a full year sooner.
- Every 3-point APR increase adds roughly $475–$750 in interest on this balance and payment.
- These figures assume no new charges. Adding spending while paying down extends every timeline above.
The data
| APR | Months to payoff | Total interest | Total paid | Extra vs 15% APR |
|---|---|---|---|---|
| 15% | 44 (3.7 yrs) | $1,509 | $6,509 | — |
| 18% | 47 (3.9 yrs) | $1,984 | $6,984 | +$475 |
| 21% | 51 (4.2 yrs) | $2,570 | $7,570 | +$1,061 |
| 24% | 56 (4.7 yrs) | $3,322 | $8,322 | +$1,813 |
| 29.99% | 73 (6.1 yrs) | $5,878 | $10,878 | +$4,369 |
Payoff of a $5,000 balance at a fixed $150/month payment, by APR (computed October 2026)
Visualized
Methodology
- Starting balance $5,000; fixed payment $150/month; no new charges, no fees.
- Interest compounds monthly at APR ÷ 12; each payment covers that month's interest first, then principal.
- Final payment adjusted when the remaining balance drops below $150.
- Computed October 2026 with the same amortization engine as our Credit Card Payoff Calculator — anyone can reproduce these figures from the stated inputs.
Cite this research
Unpack Money Research Desk (October 2026). “The Cost of Carrying $5,000 in Credit Card Debt, by APR.” Unpack Money. https://unpackmoney.com/research/cost-of-5000-credit-card-debt-by-apr/
Journalists and researchers: you may reuse these figures with attribution and a link.
Sources
- Methodology: computed by the Unpack Money Research Desk, October 2026, from the stated inputs. Reproduce it with our Credit Card Payoff Calculator.
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