Credit Card Payoff Calculator
See when you will be free of a credit card balance at what you can pay each month, and what paying only the minimum would cost instead. You also get the payment that clears the card by a date you choose, and whether a balance transfer or a different payoff order gets you there sooner.
By October 7, 2029, if you pay $300 a month on $8,000 at 20.99%. You pay $2,869 of interest. Paying only the minimum ($240.00 this month) would take 25 years 3 months and cost $10,892. Paying $400 a month instead saves $937 and 12 months.
Balance left, month by month, under each option.
Your three options
| Months | Interest | |
|---|---|---|
| Minimum only (3%, $10 floor) | 25 years 3 months | $10,892 |
| $300 a month | 3 years 1 month | $2,869 |
| $400 a month | 2 years 1 month | $1,932 |
| Interest charged this month | $139.93 |
Show the math
Each month, interest = balance × rate ÷ 12 and is added to the balance. Then your payment are applied. Repeat until the balance is zero. The minimum-only path pays 3% of the balance (at least $10) each month, which is why it takes decades. The target payment is the level payment that clears the balance in the months you choose. Balance transfer: the fee is added to the balance, the promo rate applies for 12 months, then the regular rate. Several debts: minimums on all of them, then everything left over goes to the first debt in the chosen order. Each minimum that frees up rolls forward. In real life interest is charged on the average daily balance and you lose the grace period while you carry a balance, so real figures differ a little.
How this calculator works
Each month the calculator adds interest (balance × annual rate ÷ 12), then subtracts your payment, until the balance reaches zero. It runs the same loop with the card’s minimum payment, a percentage of the balance with a dollar floor, to show the minimum-only path.
Worked example: $5,000 at 19.99%
| Monthly payment | Time to pay off | Interest paid |
|---|---|---|
| Minimum only (3%, $10 floor) | 20 years 11 months | $5,984 |
| $200 | 2 years 9 months | $1,521 |
| $400 | 15 months | $653 |
Assumptions
- No new purchases or fees are added while paying down. The rate does not change.
- Interest is compounded monthly for simplicity. Real cards compound daily, which makes the true cost slightly higher.
If the payment the tool needs is not there
Free, regulated help exists and it usually beats a consolidation loan from the card issuer.
Common questions
Frequently asked questions
- How long does it take to pay off a credit card paying only the minimum?
- Decades. On $8,000 at 20.99% with a 3% minimum, about 24 years and more than $10,000 of interest. The minimum shrinks as the balance falls, so the last few hundred dollars take years. Quebec requires a 5% minimum, which roughly halves that. Your statement must show this figure.
- What is the minimum payment on a credit card in Canada?
- Usually the greater of 3% of the balance and $10. Some cards use 2%, or interest plus 1%. In Quebec the law requires a minimum of at least 5% of the balance.
- Should I pay off my credit card or invest?
- Pay the card. No investment reliably returns 20% a year after tax, and paying off a 20% card is a guaranteed 20% return. Keep an emergency fund, then attack the highest-rate balance first.
- Is a balance transfer worth it?
- Usually yes, if you can pay most of the balance off before the promotional rate expires. A 0% for 12 months offer with a 3% fee on $8,000 costs $240 and can save $1,500 or more of interest. The catch is the standard rate afterward, and new purchases on the new card usually accrue interest right away.
- How is credit card interest calculated?
- Daily, on the average daily balance, at the annual rate divided by 365, and charged monthly. Once you carry a balance, new purchases accrue interest from the day they post. The 21-day grace period only applies when the previous statement was paid in full.
- What happens if my payment barely covers the interest?
- The balance never goes down. Only the part of each payment above the month's interest reduces what you owe.
- Avalanche or snowball: which should I use?
- Avalanche (highest rate first) costs the least in interest. Snowball (smallest balance first) clears a debt sooner, which helps some people stay motivated.
- What if I cannot even cover the minimums?
- Contact a non-profit credit counselling agency such as Credit Canada or Consolidated Credit. They can negotiate a debt management plan with reduced or frozen interest. A consumer proposal through a licensed insolvency trustee is the next step. Both are far cheaper than payday loans or ignoring the bills.
Sources
Sources
Every figure on this page comes from one of these primary sources. Data last verified .
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