See how long it takes to pay off a credit card balance when making only minimum payments, and how much interest you will pay.
Rates as of Q2 2025 (example)
This calculator shows how long it would realistically take to pay off a credit card balance if you only ever make the minimum payment - calculated as a percentage of your current balance, subject to a minimum dollar floor, which is how most Canadian credit card minimum payments actually work - and how much total interest you'd pay along the way.
Each month, interest is charged on the current balance. The required payment is the larger of (balance × minimum payment percentage) or the minimum payment floor. As your balance shrinks, the percentage-based minimum payment shrinks too - which is why minimum payments stretch out for a very long time and most of each payment can go toward interest rather than principal, especially early on.
Formula: Each month, Interest = Balance × (Annual Rate ÷ 12); Payment = max(Balance × Minimum Payment %, Minimum Payment Floor); Principal Paid = Payment − Interest; new Balance = Balance − Principal Paid. Repeat until the balance reaches zero.
Example: A CA$5,000 balance at a 20% interest rate (example rate — enter your actual rate), with a minimum payment of 2% of the balance (and a CA$25 floor), would take roughly 524 months - about 43.7 years - to pay off, with total interest of approximately CA$20,210, over four times the original balance. (Note: this example is for illustration purposes only - it dramatically demonstrates why paying only the minimum is costly and slow.)
Canadian credit card interest rates commonly range from around 19.99% to 22.99% APR for standard cards, with some retail/store cards charging significantly higher rates (sometimes 28-30%) - check your specific card's disclosure statement for the exact rate. Minimum payments are typically the greater of a small percentage of your balance (often around 2-3%) or a fixed minimum dollar amount, which is exactly what this calculator models - and as the example above shows, this structure means a balance can take decades to clear and cost many times the original amount in interest if you never pay more than the minimum. Carrying a balance also affects your credit utilization ratio (the percentage of your available credit you're using), which is a significant factor in your credit score - generally, keeping utilization below 30% (and ideally lower) is considered favourable. If you're carrying a high-interest balance, options to consider include a balance transfer to a card with a promotional 0% or low-rate period (watch for transfer fees and what the rate reverts to after the promotional period), or consolidating with a lower-rate personal loan or line of credit (see our Personal Loan Calculator and Debt Consolidation Calculator) - both of which can substantially reduce the time and cost to become debt-free compared to minimum payments alone.
Because the minimum payment is usually a percentage of your current balance, it shrinks every month as your balance shrinks - and a large portion of each payment goes toward interest rather than principal, especially early on when the balance (and therefore the interest charge) is highest. This creates a very slow payoff that can take decades and cost several times the original balance in interest.
Most Canadian issuers calculate the minimum payment as the greater of a percentage of your statement balance (often around 2-3%) or a fixed minimum dollar amount (commonly CA\$10-25), plus any overdue amounts, fees, and interest. Check your specific card's cardholder agreement or statement for the exact formula.
Paying any fixed amount above the minimum - even a modest extra amount - dramatically reduces both the payoff time and total interest, because more of each payment goes toward principal. Our Credit Card Payoff Calculator lets you model a fixed monthly payment amount to see the impact. Other options include a balance transfer to a lower-rate card (during a promotional period) or a debt consolidation loan at a lower rate.
Credit utilization is the percentage of your available credit that you're currently using (balance ÷ credit limit, often calculated per card and overall). It's a significant factor in credit scoring models - generally, keeping utilization below 30% (and lower is often better) is associated with healthier credit scores, while consistently carrying high balances relative to your limits can lower your score even if you make all payments on time.
On most Canadian credit cards, if you don't pay your statement balance in full by the due date, the interest-free grace period on new purchases is lost, and interest typically applies to new purchases from the date of purchase (not just to the carried balance) until you pay your balance in full again. This is one reason carrying even a small balance can be costly if you continue to make purchases.
It can be, if the promotional rate (often 0% or a low rate for a limited period) and any balance transfer fee result in lower overall interest than staying with your current card, and if you have a realistic plan to pay down or off the balance before the promotional period ends (after which the rate often reverts to a high standard rate). Read the terms carefully, including the transfer fee and what happens to any remaining balance after the promotional period.
Disclaimer: The information, rates, and figures provided on this page are for educational and illustrative purposes only and do not constitute financial advice. The interest rate, minimum payment percentage, and floor used are examples only and do not represent terms from any specific card issuer - actual terms vary by card and change over time. This calculator does not account for new purchases, fees, or promotional rates. Always check your card's cardholder agreement for its actual terms, and consult a qualified financial adviser or credit counsellor if you're struggling with debt.