Credit Cards
Credit Card Payoff Calculator Canada — Interest & Payoff
Free credit card interest calculator Canada. See payoff time, total interest and the impact of increasing your monthly payment.
Updated August 7, 2026
MoneyMapCanada Editorial Team
Editorial research and source-check process
MoneyMapCanada publishes Canadian personal-finance calculators and educational guides using a source-first editorial process. Time-sensitive financial claims are checked against the responsible government agency, regulator, legislation, provider document, or official publication. The organizational byline does not claim a professional licence or academic credential.
MoneyMapCanada publishes educational information and planning estimates. Verify material decisions with the cited official source or an appropriately qualified professional.
Credit card payoff calculator
Payoff time
23 months
Total interest
$1,429
Total paid
$7,929
+$150/month payoff
15 months
Methodology
Interest accrues monthly and the last payment is reduced to the exact remaining amount. A plan is marked unresolved if the payment cannot amortize the balance within 600 months.
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 August 7, 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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