Debt · Canada
Credit card payoff.
See exactly how long it takes to pay off your card and how much interest you'll save with extra payments. Compare minimum-only payments against your accelerated plan.
A credit card balance is charged interest at the annual rate divided across the year, so paying only the minimum keeps most of each payment going to interest. This calculator shows how many months a balance takes to clear and how much extra monthly payments save.
Source: FCAC — How credit cards work; FCAC — Paying off your debt · As of
Cite this page: TNAADO Tools, “Credit Card Payoff Calculator”, https://tools.tnaado.ca/calculators/debt/credit-card/
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Your payoff plan
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Understanding credit card payments
Credit cards typically charge interest on your outstanding balance if you don't pay the full amount by the due date. The Annual Percentage Rate (APR) is the yearly interest rate, but issuers calculate interest daily and charge it monthly.
Minimum payments
Credit card issuers set minimums as either a percentage of your balance (typically 2–3%) or a flat fee, whichever is greater. Paying only the minimum can take years to clear your balance and costs significantly more in interest.
Benefits of extra payments
Even an additional $50 or $100 per month can save thousands of dollars and years of payments. The calculator shows the comparison so you can see the impact.
Tips to pay off credit card debt faster
- Pay more than the minimum whenever possible.
- Consider a balance transfer to a lower-rate card.
- Stop using the card while paying it off.
- Set up automatic payments to avoid late fees.
- Use windfalls (tax refunds, bonuses) to make lump-sum payments.
Worked example: a $5,000 balance at 19.99%
A $5,000 balance at 19.99% APR, with a minimum payment of 2% of the balance (never less than $10), is the calculator’s starting case. Adding $100 a month above the minimum clears it in 3.8 years (46 months), with $1,914 of interest and $6,914 paid in total.
| Monthly extra above the minimum | Time to pay off | Total interest | Total paid |
|---|---|---|---|
| $0 | Not cleared in 600 months (50 years) | $21,580 by the 600-month limit | — |
| $50 | 7.2 years (86 months) | $3,455 | $8,455 |
| $100 | 3.8 years (46 months) | $1,914 | $6,914 |
| $200 | 2.0 years (24 months) | $1,027 | $6,027 |
- The minimum shrinks as the balance shrinks. With a 2% minimum and a $10 floor, the payment barely exceeds the monthly interest, so the balance is still not cleared when the calculator stops at 600 months, by which time $21,580 of interest has accrued.
- A 3% minimum is a different story: clearing the same balance with minimums alone takes 20.9 years (251 months) and $5,984 of interest, so the minimum percentage your issuer sets matters.
- Each extra $50 helps, with diminishing returns: $50 extra cuts interest to $3,455, $100 to $1,914 and $200 to $1,027.
Next steps: compare several balances at once with the debt snowball calculator, test a lower-rate loan with the debt consolidation calculator, or see a fixed payoff plan with the personal loan calculator.
How this is calculated
- Each month: interest = balance × APR ÷ 12.
- Minimum payment = the larger of balance × minimum % and $10; payment = minimum + your extra, but never more than the balance plus that month’s interest.
- New balance = balance + interest − payment. The loop repeats until the balance is cleared or reaches 600 months.
Real cards usually calculate interest daily and your issuer’s minimum formula may differ, so treat the result as an estimate. The Financial Consumer Agency of Canada says issuers must give federally regulated cardholders at least a 21-day interest-free grace period on purchases, that the grace period does not apply to cash advances or balance transfers, and that your interest rate may increase if you miss a required minimum payment (FCAC, How credit cards work, checked 1 October 2026). Typically, carrying a balance from one month to the next also means new purchases start to accrue interest; this calculator does not model that, and assumes no further purchases or fees.
General information, not financial advice. If you are struggling with card debt, a non-profit credit counsellor can help.
TNAADO Inc. · Toronto
Why the minimum payment never ends
A credit card charges interest on the balance once the grace period is lost, and the minimum payment is typically a small percentage of the balance or a flat floor, whichever is greater. Because the minimum falls as the balance falls, it is shaped to keep the account open rather than to clear it. That is how a moderate balance at a typical card rate takes decades to repay and costs more in interest than the purchases originally did.
The mistake people make. Believing the grace period still applies. Interest-free days apply only when the statement is paid in full. Carry any balance and new purchases generally start accruing interest from the transaction date, so the grace period quietly disappears at exactly the moment it is needed. Anything paid above the minimum shortens the payoff sharply, which makes it the highest-return use of a spare dollar in most household budgets.
Frequently asked questions
How long does it take to pay off $5,000 on a credit card paying only the minimum?
It depends on the minimum formula. At 19.99% with a minimum of 2% of the balance (floor $10), the calculator does not clear the balance within its 600-month limit and shows $21,580 of interest by then. At a 3% minimum it takes 20.9 years (251 months) and $5,984 of interest. Check your own statement for your issuer’s minimum.
How much does an extra $100 a month save?
On this example it takes the payoff from the 600-month limit down to 3.8 years and limits interest to $1,914. Even $50 extra cuts it to $3,455 over 7.2 years.
How is credit card interest calculated?
Issuers must state the rate on your statement and agreement, and many calculate interest daily on the balance and charge it monthly. This calculator uses the simpler APR divided by 12 on the month’s balance, so a statement will differ slightly.
What is the interest-free grace period?
Federally regulated issuers must give at least 21 days after your statement date to pay purchases from the previous billing period without interest, according to the FCAC. It does not apply to cash advances, cash-like transactions or balance transfers, which accrue interest from the day you take them.
Can my interest rate go up?
Yes. The FCAC notes that if you do not make your required minimum payment by the due date your rate may increase, and you may lose a promotional rate. Check your agreement for the exact terms.
Should I pay off the card or consolidate it?
If you can get a loan at a materially lower rate and will not run the card back up, consolidation can cut interest; compare with the debt consolidation calculator, remembering that a longer term can raise total interest.
Disclaimer
This calculator provides estimates for educational and informational purposes only. Actual payoff times and interest charges will vary based on payment consistency, rate changes, additional charges, and fees. If you're struggling with credit card debt, consider consulting a non-profit credit counseling agency.