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Credit Card Minimum Payment Calculator

Credit card minimum payment calculator

Amy Tokic Associate Content Editor (SEO)

Fact checked by Cory Santos

Updated Apr 16, 2025

Use our free credit card minimum payment calculator to estimate the time it will take to pay off your credit cards if you only make the minimum payments.

While we adhere to strict editorial guidelines, partners on this page may provide us earnings.

What is the credit card minimum payment for your card? Find out below:

Sometimes, you may find yourself in a situation where you can only afford to make the minimum payment on your credit card balance. While making the minimum payment is preferable to missing or skipping a payment, it’s important to note that doing so will result in accruing additional interest fees over time, ultimately costing you more in the long run.

If you want to calculate the estimated time it will take to pay off your credit card by making only the minimum payments each month, you can use our credit card minimum payment calculator to find the amount.

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Minimum credit card payment calculator

Use this calculator to determine how long it will take you to payoff your credit cards if you only make the minimum payments. Enter your credit card information below and press "View Report" to see your payoff details.

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Information and interactive calculators are made available to you only as self-help tools for your independent use and are not intended to provide investment or tax advice. We cannot and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.

How credit card minimum payments work in Canada

Amy Tokic

By Amy Tokic

Fact Checked: Cory Santos

🗓️

Updated: April 16, 2025

Partners on this page provide us earnings.

Credit card minimum payments in Canada are typically calculated using one of two methods:

  1. 1 Flat dollar amount: Usually $10 (plus interest and fees) for smaller balances under $1000.
  2. 2 Percentage of balance: Typically 3% of the outstanding balance for larger amounts.

Minimum payment example

Your minimum payment will always be the larger result of these two calculations. For example, a $100 balance would require a $10 minimum payment, while a $5,000 balance would require $150 (3% of $5,000).

While making minimum payments keeps your account in good standing, paying more significantly reduces interest costs. For example, on a $5,000 balance at 19.99% interest, minimum payments would cost $2,357 in interest over four years. Paying $350 monthly would save $1,599 in interest and clear the debt in 17 months.

If you're struggling with credit card debt, consider a balance transfer card with a low promotional interest rate to reduce your interest burden while paying down the balance.

FAQs

  • How is the interest calculated on my credit card?

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    Credit card interest is calculated on a daily basis. Let’s say that your credit card has an annual interest rate of 19% - this doesn’t mean that you are charged 19% interest once a year. Instead, the 19% is divided by 365 (representing each day in the year) and then multiplied by your average daily balance for the month.

  • What if I only make the minimum payment each month?

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    If you choose to make only the minimum payment on your credit cards, it will significantly prolong the time it takes to pay off your balances, sometimes by several years. On top of that, your credit card issuers will continue to apply interest charges until your balance is completely paid off.

  • What happens if I miss or skip a monthly payment?

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    If you fail to make at least the minimum payment or if you make a late payment, there are potential risks: Your interest rate may increase, your credit score could be negatively impacted, and you may lose the benefit of any promotional rate offer you currently have. It’s important to fulfill your payment obligations to avoid these consequences.

  • What if I pay a fixed amount each month?

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    It’s generally advised by experts to pay the full statement balance each month. However, there may be situations where this is not feasible. In such cases, it’s crucial to make at least the minimum payment in order to keep your account up to date and avoid any late fees or penalty APRs. To ensure that you stay on top of your credit card debt and pay it off as soon as possible, consider using a budgeting app.

Amy Tokic Associate Content Editor (SEO)

Amy Tokic is an SEO content editor for Money.ca. She holds a B.A. in Communications from the University of Windsor. Amy is an award-winning author and has been writing professionally for 15 years, publishing articles in the lifestyle and health sectors. In her free time, Amy loves perusing used book and record stores, and chasing squirrels with wild abandon (a habit attributed to spending too much time with her pooches).

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