Loans · credit cards
Credit Card Payoff Calculator
When your card will be paid off, the interest it costs, and how much faster an extra $50 gets you there.
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How credit card interest works
Most Canadian cards charge about 20% to 23% a year, worked out every day and added each month. Paying only the minimum, often 3% of the balance or $10, mostly covers interest, so a $5,000 balance can take over 15 years to clear.
The fastest way out: pay a fixed amount every month that's well above the minimum, and stop adding new charges. With several debts, compare paying the highest rate first with the debt repayment calculator; a lower-rate consolidation loan can help too (loan repayment calculator).
Frequently asked questions
How long will it take to pay off $5,000 on a credit card?
At 20.99% with $200 a month, about 2 years 10 months and roughly $1,630 in interest. Paying only the minimum can take more than 20 years.
Is it better to pay the minimum or more?
Always more if you can. The minimum mostly pays interest; every extra dollar goes straight to the balance.
Does a balance transfer help?
It can: a low promotional rate means more of each payment cuts the debt. Check the transfer fee (often 1% to 3%) and what the rate becomes after the promo ends.
Should I use savings to pay off my credit card?
Usually yes, after keeping a small emergency fund: card interest at 20% costs far more than savings earn.
Plan the next step for your home
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