Credit Cards
Credit Card Payoff Calculator Canada
Estimate payoff date and interest cost on any Canadian credit card balance at 20.99% APR.
Updated May 26, 2026
MoneyMapCanada Editorial Team
Editorial review and fact-check team
The MoneyMapCanada Editorial Team reviews every article and calculator for factual accuracy, source integrity, and consistency with current Canadian government guidance. Each piece is cross-checked against CRA publications, FCAC consumer guidance, CMHC rules, or CDIC coverage definitions before publication. The team also monitors for rate and rule changes and flags outdated content for revision.
Debt payoff inputs
Estimated payoff time
23 months
$1,550 estimated interest.
Payoff time
23 mo
Balance
$6,500
Interest
$1,550
Payment
$350
Debt payoff timeline graph
$6,500
$0
Payoff scenarios
Remaining balance scenarios
Debt payoff breakdown
$6,500
$1,550
Payoff momentum
$350 monthly payment
+$150 monthly payment compared with current payment.
Current payment
$350
Interest estimate
$1,550
Faster payoff saves
8 months
Assumptions used
| Current balance | $6,500 |
|---|---|
| Interest rate | 20.99% |
| Monthly payment | $350 |
| Faster scenario | $500 |
What if scenarios
+$150/mo payment
15 months
Saves 8 months
+$500/mo payment
9 months
Larger payment boost
$1,000 lump sum today
19 months
One-time prepayment impact
Rate at 15.99% (consolidation)
22 months
If you consolidated to a lower rate
Real-world context
Monthly interest drag: At 20.99%, roughly $114 of each payment goes to interest in month one.
High-interest threshold: At 20.99%, this qualifies as high-interest debt. Prioritizing payoff or consolidation can save significantly.
Canadian average credit card rate: Most Canadian credit cards charge 19.99–22.99% annually. Carrying a balance at these rates is costly.
How this calculator works↓
| Formula | Standard amortization: balance × (1 + r/12) − payment each month until zero |
|---|---|
| Interest rate | Annual rate divided by 12 for monthly compounding |
| Payoff months | Solved iteratively — payment must exceed first-month interest to make progress |
| Note | Does not model minimum payment increases, rate changes, or balance transfers |
This calculator is best for
- ✓Canadians paying down credit card or personal loan debt
- ✓Anyone comparing payoff timelines at different payment amounts
- ✓Debt counsellors showing clients the cost of minimum payments
Not suitable for
- ✕Student loans with income-based repayment (use a dedicated student loan calculator)
- ✕Mortgage payoff — use the mortgage calculator for amortization
- ✕Multiple debts — use the debt snowball calculator for multi-balance scenarios
Related guides and tools
Note: This calculator is designed to be conservative and may show slightly higher costs or lower returns than promotional tools. Use it for planning purposes only — not as a commitment from any lender or institution.
Calculator method
How to use this result before making a decision
Run a conservative scenario first, then test a best-case and stress-case version. A calculator is most useful when it shows whether the decision survives higher costs, slower payoff, lower returns, or a tighter monthly budget.
Methodology and limits
- Inputs are educational estimates and may use simplified formulas or rounded assumptions.
- Actual results can change because of tax rules, lender terms, fees, timing, compounding, province, credit profile, or provider eligibility.
- Use the output as a planning checkpoint, then confirm final numbers with official sources, your financial institution, employer, insurer, lender, or a qualified professional.
How does credit card interest work in Canada?
Canadian credit cards charge interest daily on any balance carried after the statement due date. The standard purchase interest rate is 19.99%–20.99% APR. Daily interest = balance × annual rate ÷ 365. There is no grace period on new purchases if you carry any balance forward from the previous statement — interest accrues from the transaction date.
What is the average credit card interest rate in Canada?
The average Canadian credit card purchase interest rate is 19.99%–20.99% APR. Low-interest cards charge 8.99%–13.99%. Cash advance rates are typically 21.99%–24.99% with no grace period. Store and retail cards sometimes charge 24.99%–29.99%. The Mastercard interest rate and Visa purchase rate at major Canadian banks are both usually 19.99%–20.99%.
What is a cash advance fee on a credit card?
A cash advance fee is charged when you withdraw cash from an ATM using a credit card, or do a balance transfer. Canadian banks typically charge 3%–5% of the advance (minimum $5–$10) as an upfront fee. The cash advance interest rate (usually 21.99%–24.99%) then starts accruing immediately — there is no grace period on cash advances.
What is purchase interest on a credit card?
Purchase interest (also called purchase rate or purchase APR) is the interest charged when you carry a purchase balance past the payment due date. In Canada, the standard purchase interest rate is 19.99%–20.99%. No interest is charged if you pay your full balance by the due date each month — this is the grace period.
When do you start paying interest on a credit card?
Interest starts when you carry any balance past the statement due date. The grace period (typically 21 days) is only interest-free if you paid the full previous statement balance. If you carry any amount forward, interest charges on new purchases begin from the transaction date — not the statement date.
What is a good interest rate on a credit card in Canada?
A good credit card interest rate in Canada is anything below 15% APR. Standard cards charge 19.99%–20.99%; low-interest cards 8.99%–13.99%. However, the best strategy is to pay the full balance every month — then the rate is irrelevant. If you regularly carry a balance, a low-interest card can save hundreds of dollars per year.
What is the Mastercard interest rate in Canada?
Mastercard credit card interest rates in Canada depend on the issuing bank. Most Canadian bank Mastercard cards charge 19.99%–20.99% for purchases. Low-interest Mastercard options can be 9.99%–12.99%. Cash advance rates are typically 21.99%–24.99%. Check your cardholder agreement for your specific card's purchase rate and cash advance rate.
Sources used
Official references checked for this page
Updated May 26, 2026
Each claim on this page is traceable to one of the government authorities or regulators below. Rates, tax rules, eligibility requirements, and product terms can change — verify current details directly with the linked source before making any financial decision.
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