Carrying a balance on a credit card is expensive. This credit card interest calculator for Canadians shows how much interest your balance costs per month, how long it will take to pay off, and how much you’d save by paying a little more. You can also pick how many months you want to take and see the monthly payment you need.
Credit card interest calculator (Canada)See what your balance costs in interest, and how long it takes to pay off.
Interest per month
$0
on your current balance
Paid off in
0
How credit card interest is calculated in Canada
Your card’s interest rate is a yearly rate. Each month you carry a balance, you pay about one-twelfth of it on what you owe:
Card issuers actually work out interest daily, so your statement can differ slightly from this estimate. The calculator also assumes you don’t add new purchases while you pay the balance down.
If you pay your full statement balance by the due date, you usually pay no interest at all on new purchases. That’s the interest-free grace period. Cash advances are different: they usually start charging interest right away.
Worked example
| Balance | $3,000 |
| Interest rate | 20.99% a year |
| Interest in the first month | $3,000 × 20.99% ÷ 12 = $52.48 |
| Paying $150 a month | Paid off in 2 years 1 month, $724 in interest |
| Paying $200 a month | Paid off in 1 year 6 months, $510 in interest |
Adding $50 a month clears the balance 7 months sooner and saves about $214 in interest.
Ways to pay less interest
- Pay more than the minimum. Minimum payments are set low, so most of an early payment can go to interest instead of the balance. Our minimum payment calculator shows how long paying only the minimum takes.
- Stop adding to the balance. Use debit or cash for everyday spending while you pay the card down.
- Pay the highest-rate card first if you have balances on more than one card.
- Look at a lower-rate option. A low-interest card or a balance transfer offer can cut what you pay while you clear the debt. Check any transfer fee first.
- Once it’s paid off, pay in full every month. Rewards are only worth it when you never pay interest. See our beginner’s guide.
Frequently asked questions
How is credit card interest calculated in Canada?
Your card’s yearly interest rate is applied to your balance each day. Over a month, that works out to about the balance times the yearly rate divided by 12. You pay no interest on new purchases if you pay your full statement balance by the due date.
How much interest will I pay on $1,000?
At a 20.99% yearly rate, a $1,000 balance costs about $17.49 in interest a month. Enter your own balance and rate above for a quick estimate.
How long will it take to pay off my credit card?
It depends on your balance, rate and payment. For example, $5,000 at 20.99% paid off at $200 a month takes about 2 years 10 months and costs about $1,632 in interest. Use the calculator to try your own numbers.
Does paying more than the minimum really help?
Yes. Every extra dollar goes straight to the balance, so you pay less interest the next month too. Even a small increase can cut months off your payoff time.
Related reading
- Statement balance vs current balance: which one to pay to avoid interest
- Daily interest calculator: what a balance costs you each day
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