§ Calculator · Debt

Credit card minimum payment

What this is

The minimum-payment trap: 20+ years and double the principal in interest.

At 19.99% APR with a 3% minimum payment, an $8,500 balance takes ~26 years to clear and you pay $11,000+ in interest. Minimum payments are designed to keep you in revolving debt — not to clear it.

·CRA-mandated minimum on Canadian cards: greater of 3% of balance or $10.
·Some cards floor at higher (Capital One $35, MBNA $25, Tangerine 5%).
·Paying double the minimum can cut years off and save thousands in interest.

Balance (CAD)APR

Min payment % of balance

Min payment floor (CAD)

Months to clear

50 (4.2 yr)

Total paid

$12,507

Total interest

$4,007

First-month payment

$255

vs principal

47%

Credit-card interest is NOT tax-deductible. The fastest way out: pay any amount over the minimum, and pay extra against the highest-rate card first.

Disclaimer

Educational, not financial advice. Output is generated by an AI assistant using simplified assumptions. Tax rates, contribution limits, and benefit amounts change annually; confirm with a CFP, CPA, or the relevant Canadian regulator (CRA, FSRA, OSC, IIROC) before acting.