A $5,000 balance at 19.99% with a $200 monthly payment takes about 2.8 years to clear and costs $1,521 in interest. Add $50 a month and the time drops to 2.1 years, saving $389. Enter your own balance, rate and payment above.
How card interest works
Unless you pay in full by the due date, most cards charge interest on a purchase from the day you make it. The rate is often near 20%, and higher on cash advances. Interest builds on the unpaid balance, so a small payment can keep you in debt for years.
Reading the result
The first number is the time to pay off. Rows below show month-one interest, total interest and total paid, and the last rows compare your payment with a larger one. Even a small extra amount saves months and hundreds of dollars.
Why minimum payments cost so much
A minimum is often a small share of the balance, just above the monthly interest, so paying only that can stretch the debt over many years. If the calculator says “Never”, your payment does not cover the interest and the balance grows.
Paying it off faster
Pay more than the minimum and send windfalls such as tax refunds to the balance. Pay on the day you get paid instead of the due date, and stop using the card while you clear it. A balance transfer at a lower rate can help if you avoid new debt. With several cards, the avalanche method pays the highest-rate card first and saves the most money. The snowball method pays the smallest balance first and builds motivation. Either works if you stick with it, and you can run each card through this calculator in turn.
Balance transfers
Some cards offer a low or zero rate on transferred balances for a few months, with a fee of about 1% to 3%. That can save a lot of interest if the balance is paid down before the offer ends. Afterward the normal rate returns on what remains, so divide the balance by the months you have to set a payment.
Cash advances and fees
Interest on a cash advance starts the day you take the money, and a fee and a higher rate often come with it. Late payments can cancel promotional rates. Set up an automatic payment for at least the minimum so no date is missed, and pay the rest by hand.
Getting help
When payments feel out of reach, ask your lender about a lower rate or a payment plan. A non-profit credit counsellor can set up a debt management plan. Steer clear of companies that charge large upfront fees, since good help is often free.
Toronto and Ontario households
High living costs in Toronto push many households to put groceries and rent-related bills on cards. If that sounds familiar, set a monthly card limit under your credit limit and pay the statement balance in full when you can. A free credit counselling service in Ontario can also help you build a plan.
Where to go next
Compare with a fixed loan in the personal loan calculator. See your whole position in the net worth calculator. Free up money with the monthly budget calculator.
Frequently asked questions
How long to pay off a $5,000 credit card?
At 19.99% and $200 a month, about 2.8 years.
How much interest will I pay?
In that example, about $1,521.
What does an extra $50 a month do?
It cuts the time to 2.1 years and saves about $389.
Why do minimum payments cost so much?
They barely exceed the interest, so the balance falls slowly.
What is the avalanche method?
Paying the highest-rate card first to save the most interest.
Is credit counselling free?
Non-profit agencies often offer free help.
Sources and updates
Last reviewed: . Full disclaimer. How we build calculators. Editorial policy.
Estimate only. This calculator gives general information for planning. It is not tax, legal or financial advice, and it is not affiliated with the City of Toronto, MPAC or the Canada Revenue Agency. Results depend on the numbers you enter and may differ from official amounts. Check official sources or a qualified professional before you decide.