Credit card payoff calculator

Find out how long it will take to pay off your credit card at the amount you pay each month, or how much to pay to clear it by a date you choose.

The real cost of minimum payments

Most Canadian credit cards charge around 20% to 23% interest on purchases. Because the minimum payment shrinks as your balance shrinks, paying only the minimum can stretch a debt out for many years.

Example

A $5,000 balance at 20.99% adds $87.46 of interest in the first month. Paying $200 a month clears it in 2 years and 10 months, with $1,632.05 of interest. Paying only the example minimum takes 19 years and costs $7,703.80 in interest. To be debt-free in 2 years, pay $256.90 a month.

Ways to pay it off faster

Pay a fixed amount each month, not the minimum.
Use a low-interest or balance transfer card to cut the interest while you pay the balance down. Check the transfer fee and how long the promotional rate lasts.
Consider a line of credit or consolidation loan, which usually charges much less interest than a credit card.

Frequently asked questions

How is credit card interest charged in Canada?

Interest is usually calculated daily on your balance and charged on your monthly statement. If you pay your full statement balance by the due date, you normally pay no interest on new purchases.

Where can I get free help with debt?

Non-profit credit counselling agencies across Canada offer free advice and debt management plans. The Financial Consumer Agency of Canada has more information on managing debt.

Assumes no new purchases, cash advances or fees. Estimates for guidance only.