See how long it will take to pay off your credit card balance and how much interest you will pay.
Rates as of Q2 2025 (example)
| Period | Date | Payment | Principal | Interest | Balance |
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This calculator shows how long it will take to pay off a credit card balance at a fixed monthly payment, how much interest you'll pay along the way, and your total payoff date — helping you see the real cost of carrying a balance and the impact of paying more than the minimum.
Each month, interest is calculated on your current balance, and your payment first covers that interest, with the remainder reducing the principal. This repeats until the balance reaches zero. If your monthly payment is less than or equal to the monthly interest charge, the balance will never be paid off — it will stay the same or grow, regardless of how long you make payments.
Formula: Each month, Interest = Balance × (Annual Rate ÷ 12 ÷ 100); Principal Paid = Monthly Payment − Interest; New Balance = Balance − Principal Paid. This repeats until Balance reaches CA$0. Total Interest = sum of all monthly interest charges. Total Paid = Original Balance + Total Interest.
Example: A CA$5,000 balance at a 20% interest rate (example rate — enter your actual rate, found on your statement) with a fixed CA$200/month payment would take about 33 months (roughly 2 years and 9 months) to pay off, with total interest of about CA$1,522 — bringing the total amount paid to about CA$6,522. (Note: this example is for illustration purposes only — your actual payoff will depend on your card's terms and any new charges you make.)
Credit card interest rates in Canada commonly range from around 19.99% to 29.99% APR for standard cards, with some retail and store cards charging even higher rates — among the highest rates of any common consumer credit product. Credit card minimum payments are typically calculated as a small percentage of your balance plus accrued interest and fees (often around 2-3% of the balance, subject to a minimum dollar amount), which means paying only the minimum can result in a very long payoff period and substantial interest, as this calculator illustrates when the payment barely exceeds the monthly interest charge. Carrying a high balance relative to your credit limit (high credit utilization) can also negatively affect your credit score, independent of whether you're making payments on time. If you have multiple cards or debts, our Debt Payoff Calculator can help you compare the "avalanche" (highest interest rate first) and "snowball" (smallest balance first) repayment strategies, and our Debt Consolidation Calculator can help you assess whether consolidating into a lower-rate loan or balance transfer makes sense.
If your monthly payment is less than or equal to the interest charged that month, your balance will not decrease - it may even grow if fees or new charges are added. This calculator will flag this situation and tell you that the balance will never be paid off at that payment level, so you would need to increase your payment.
Credit cards are unsecured, revolving credit with no collateral, which lenders price as higher risk compared to secured loans like mortgages or auto loans. Credit card rates in Canada commonly range from around 19.99% to 29.99% APR or higher, compared to often single-digit rates for secured loans - this is why carrying a credit card balance long-term is generally one of the most expensive forms of debt.
Minimum payments are typically calculated as a small percentage of your statement balance (often around 2-3%) plus any interest and fees, subject to a minimum dollar amount set by the card issuer. Because this percentage is small, paying only the minimum on a large balance can take many years to pay off and result in substantial interest - check your specific cardholder agreement for the exact formula.
A balance transfer to a card or loan with a lower interest rate could reduce your interest costs, but check for balance transfer fees (often a percentage of the amount transferred) and whether any promotional low rate is temporary, reverting to a higher rate after a set period. Compare the total cost, including fees, against simply paying down your current balance faster.
No. This calculator assumes no new charges are added to the balance - it models paying down an existing balance with a fixed payment. If you continue to make new purchases on the card, your actual payoff time and total interest will be higher than this estimate, since new charges typically also accrue interest if not paid in full.
Two main factors are your payment history (making at least the minimum payment on time) and your credit utilization (your balance relative to your credit limit). High utilization can lower your credit score even if you're making payments on time, so paying down balances - not just making minimum payments - can help improve your score over time, in addition to reducing the interest you pay.
Disclaimer: The information, rates, and figures provided on this page are for educational and illustrative purposes only and do not constitute financial advice. The default interest rate is a sample value and does not reflect the rate on any specific credit card. This calculator assumes a fixed monthly payment with no new charges added to the balance, which may not reflect your actual card usage. Always refer to your credit card statement and cardholder agreement for your actual rate, fees, and minimum payment terms, and consult a qualified financial adviser or credit counsellor if you need help managing debt.