Credit card payoff calculator
Enter what you owe and how you'll pay it — a fixed amount each month, or a target date. We'll do the rest.
Interest is modelled monthly at APR ÷ 12. Most Canadian cards charge interest daily and give a grace period only if you pay the statement balance in full — carry a balance and interest applies from the purchase date.
Minimum payment trap calculator
Paying only the minimum is designed to keep you in debt for years. See the real cost — then what a fixed payment does instead.
Canadian card minimums are typically the greater of about $10 or 3% of the balance. Because the minimum shrinks as the balance falls, minimum-only payoff can stretch well over a decade on a mid-size balance.
Balance transfer calculator
Moving a balance to a low-promo-rate card can save hundreds — if you clear it before the promo ends. Check your numbers.
Balance transfers usually charge a 1–3% fee up front, and the promo rate (often 0%) reverts to a standard 20%+ rate on any balance left when it ends. Watch the deadline — that's where the savings are won or lost.
Understanding Canadian credit card interest
Most Canadian credit cards charge a purchase interest rate around 19.99% to 20.99% — and cash advances often 22.99% or more, with no grace period at all. The good news: if you pay your statement balance in full by the due date, you pay zero interest on purchases. Interest only becomes a problem when you carry a balance.
How credit card interest is actually calculated
Card issuers calculate interest daily using an average daily balance, then charge it monthly. If you don't pay in full, you lose the grace period, so interest applies from the day of each purchase. Our payoff calculator uses a monthly rate of APR ÷ 12 to keep things simple — the result is very close and easy to reason about.
The minimum payment trap
Every Canadian card sets a minimum payment — usually the greater of about $10 or 3% of your balance. It feels affordable, and that's the point. Because the minimum shrinks as your balance falls, paying only the minimum on an $8,000 balance at 20.99% can take well over a decade and cost more in interest than the original debt. The single most powerful move is to fix your payment at a set dollar amount and never let it drop.
Fixed payments beat minimum payments
Switching from a shrinking minimum to a flat $300/month payment can cut years off your payoff and save thousands. Use the minimum payment trap calculator above to see the difference for your own balance — the gap is usually startling.
When does a balance transfer make sense?
A balance transfer moves debt from a high-rate card to one offering a low promotional rate — frequently 0% — for a set period, typically 6 to 12 months. There's almost always a transfer fee of 1% to 3%. The math works when:
- You can realistically clear most or all of the balance before the promo period ends;
- The interest you'd save exceeds the transfer fee; and
- You stop adding new purchases to either card.
If a balance survives past the promo window, it reverts to a standard 20%+ rate — so the deadline matters more than the headline 0%.
Tips to pay off credit card debt faster
- Pay more than the minimum, and fix the amount so it doesn't shrink.
- Target the highest-rate card first (the avalanche method) to minimise interest.
- Avoid cash advances — they charge interest immediately with no grace period.
- Consider a lower-rate product — a low-interest card, a line of credit, or a consolidation loan can dramatically cut the rate.
Popular credit card questions
Most purchase rates sit between 19.99% and 20.99%. Low-interest cards can drop to around 12–13% (often for an annual fee), while cash advances and some store cards run higher.
It depends on your balance, rate and payment. Paying only the minimum can take 10+ years on a mid-size balance; a fixed monthly payment can clear it in a couple of years. Use the payoff calculator above to see your exact timeline.
Applying for a new card creates a temporary hard inquiry, but moving a balance to free up your old card can lower your overall utilisation, which often helps your score over time.
Pay your full statement balance by the due date every month. Purchases have an interest-free grace period as long as you never carry a balance forward.