Credit Card Minimum Payment Calculator
Discover the true cost of making only minimum payments — and how much you save by paying a fixed amount or a little extra each month.
Credit Card Details
Most Canadian cards use 2–3% minimum (or $10 floor)
Payment Scenarios
Pay a fixed amount instead of recalculating minimum each month
See how much extra payment saves
Credit Card Minimum Payments in Canada
Credit card minimum payments are designed to keep you paying interest for as long as possible. At Canada's standard rate of 19.99%, a $5,000 balance paid at 2% minimum per month takes over 20 years to clear and costs more than $7,000 in interest alone.
How Canadian Minimum Payments Are Calculated
Most Canadian credit cards calculate the minimum as the greater of: a percentage of the outstanding balance (typically 2–3%), a flat dollar amount (usually $10), or the interest accrued plus $1. As your balance decreases, so does the minimum payment — which is why payoff takes so long.
The Power of a Fixed Payment
The single most effective change you can make is to fix your monthly payment at the amount of your first minimum payment and never let it decrease as your balance drops. This alone can cut years off your payoff timeline and save thousands in interest.
Balance Transfer Cards in Canada
Many Canadian issuers offer balance transfer promotions at 0% for 6–12 months (sometimes with a 1–3% transfer fee). Transferring a high-rate balance and paying aggressively during the promotional period can save significant interest. Just ensure the balance is cleared before the promotional rate expires.
Credit Card Disclosure Requirements
Canadian regulations require credit card statements to show how long it will take to pay off your balance making only minimum payments, and the total interest cost. If you only see a minimum payment amount on your statement, look for the disclosure box — it's legally required.