Credit Card Payoff Calculator
Enter your card balance, interest rate and the payment you can make. You will see the payoff time and interest cost against paying only the minimum.
Most Canadian cards ask for 2–3% of the balance.
Minimum payments shrink as the balance drops, which stretches the debt out for years.
- Your payment
- Minimum only
Minimum payments shrink as the balance drops, which is why that line flattens out for years.
| Approach | Monthly payment | Time to clear | Interest cost |
|---|---|---|---|
| Your plan | $0 | 0 months | $0 |
| Minimum only | 0% of balance | 0 months | $0 |
What this means
Credit card interest around 0.00% is the most expensive money most Canadians carry. Your plan saves roughly $0 versus paying only the minimum.
How it works
Card interest compounds monthly on the full balance, and minimum payments are designed to keep you paying for years. Clear the highest-rate card first, and consider a lower-rate line of credit only if you stop adding new charges.
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Why minimum payments are a trap
Minimums are usually a small percentage of the balance, so they shrink as the balance does — stretching a typical card balance over many years and often costing more in interest than the original purchases.
How card interest is charged
Most Canadian cards charge around 19.99% and lose the interest-free grace period once you carry any balance. Cash advances typically charge interest from day one with no grace period at all.
Getting the rate down
A low-rate card, a balance transfer promotion or a line of credit can cut the rate substantially. Whatever you use, fix a flat monthly payment and keep it there until the balance is gone.
Common questions
- Does carrying a small balance help my credit score?
- No. That is a myth. Paying in full every month builds the same history with no interest.
- Should I close the card once it is paid off?
- Usually not right away — available credit and account age both help your score. Just stop using it for anything you cannot pay off that month.
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