Credit Card Payoff Calculator
Enter your credit card balance and APR to see how much faster fixed payments eliminate your debt compared to minimum payments. Canadian credit cards typically charge 19.99%–22.99% APR on outstanding balances.
Credit Card Details
Payoff Comparison
Minimum Payments
~$100/mo (2% of balance)
$25,909 paid over 50 years
Interest over 50 years: $21,580
Still owing $671 after 50 years — barely denting the balance.
Fixed Payment
$300/mo
20 months (1.67 yrs)
Total interest: $906
Total paid: $5,906
What does a new purchase add?
Compare your current balance with the same balance plus one purchase, paying the same $300 a month.
Frequently asked questions
How is credit card interest calculated?
Credit card interest compounds monthly on your outstanding balance at the annual rate divided by 12. Interest is added to the balance before your payment is applied, so a payment that's close to the minimum barely touches the principal — most of it covers the interest that just accrued.
What's a typical minimum payment on a Canadian credit card?
Most Canadian issuers set the minimum payment at roughly 2% of the outstanding balance, subject to a small dollar floor (often around $10). The calculator uses this as the default minimum-payment assumption — you can adjust the balance and rate to match your own card.
Why does paying only the minimum take so long to clear the balance?
Because the minimum shrinks as the balance shrinks, a declining percentage-of-balance payment stretches repayment out for years and lets interest keep compounding on a large remaining balance. A fixed dollar payment stays constant even as the balance drops, so a growing share of each payment goes to principal.
How much can switching to a fixed payment save?
The calculator compares the minimum-payment path against a fixed monthly payment you choose, showing months saved and total interest saved side by side. Even a modest increase over the minimum payment meaningfully shortens the payoff timeline because more of every dollar goes toward the principal instead of interest.
Does paying more than my chosen fixed amount help further?
Yes — any extra amount above the required payment reduces principal directly, which lowers the interest charged the following month and compounds the payoff benefit. Re-run the calculator with a higher fixed payment to see the effect on both the months-to-payoff and total interest figures.