Credit Card Payoff Calculator

Plan to clear credit card debt. Single-card extra payment savings or multi-card snowball vs avalanche comparison. Months to payoff, total interest, and a verdict.

How this calculator works

In single-card mode, the calculator simulates two scenarios: paying only the monthly minimum (typically 3% of the balance, $10 floor in Canada) versus minimum plus your extra payment. In multi-card mode, it compares snowball (smallest balance first) against avalanche (highest APR first) given a fixed monthly budget.

Card details

On top of the minimum payment. This is what makes most of the difference.

Savings from extra payment
$4,492 saved
213 months sooner with an extra $100/mo

Minimum payment only

Time to payoff20 yr 11 mo
Total interest paid$5,984

With extra payment

Time to payoff3 yr 2 mo
Total interest paid$1,492

About credit card debt payoff strategies

Canadian credit cards typically charge 19.99% to 24.99% annual rate on outstanding balances, and 25% to 29.99% on cash advances. On a $5,000 balance at 19.99%, paying just the monthly minimum (typically 3% of the balance, $10 floor) takes about 17 years and costs over $5,000 in interest alone. That's why every additional dollar applied to principal is essentially an investment with a guaranteed return equal to the card's APR.

Snowball vs avalanche

Snowball attacks the smallest balance first to generate motivating quick wins. Avalanche attacks the highest APR first, mathematically minimizing interest paid. The difference between the two rarely exceeds 5 to 10% of total interest; the deciding factor is consistency. If you need psychological momentum, snowball works. If you're disciplined and optimization-oriented, avalanche edges ahead.

0% balance transfers

Several Canadian issuers (BMO, MBNA, RBC, CIBC) offer 0% balance transfer promotions for 6 to 12 months with a 1% to 3% transfer fee. On $5,000 transferred at 0% with 3% fee ($150), you save about $800 in interest versus 19.99% over 12 months. The catch: if the balance isn't paid off by the promotional end, the regular rate (often 21 to 23%) applies to the remaining balance. Set up automated payments that clear the balance one month before the deadline.

When to consolidate cards

A personal consolidation loan at 8% to 12% almost always beats multiple cards at 19% to 24%. A personal line of credit or HELOC at 6% to 8% is even better, but it requires home equity. Warning: consolidating without changing spending habits often rebuilds the original card balance within 18 months. Consolidation only works if you close or freeze the cards after transferring.

Compound interest on revolving debt

Credit cards compound interest daily. A $5,000 balance at 19.99% generates about $2.74/day of interest, or $82/month. If your minimum payment is only $100, just $18 actually goes to principal in the first month. That's why a balance without extra payments can take decades to clear: compounding works against you the same way it would work for you in an investment.

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Frequently Asked Questions

Last updated: July 2026

Avalanche is mathematically faster (saves more interest) because it kills the highest-APR debt first. Snowball is psychologically faster (more visible wins) because it eliminates entire cards quickly. On most realistic Canadian debt profiles (2 to 4 cards, balances $1,000 to $10,000, APRs 19.99% to 24.99%), avalanche saves 5% to 15% in total interest versus snowball over the full payoff period. The difference is bigger when one card has a much higher APR than the others (e.g., a department store card at 28.99% mixed with bank cards at 19.99%). Pick avalanche if you're disciplined, snowball if you need motivation to stay the course.

A balance transfer moves debt from a high-APR card to a new card with a promotional 0% APR for 6 to 12 months. The new issuer charges a transfer fee, typically 1% to 3% of the transferred amount, paid upfront and added to the new balance. Math: $5,000 transferred at 3% fee = $150 fee, but if you would have paid $850 in interest at 19.99% over 12 months, you save $700 net. Catch: any new purchases on the transfer card often accrue interest at the regular rate immediately (no grace period). Pay off the transferred balance BEFORE the promo ends, because the regular APR (often 21.99% to 23.99%) then applies to the remaining balance. Top transfer cards in Canada in 2026: MBNA True Line Gold, BMO Preferred Rate, RBC Visa Cash Back Preferred.

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Educational tool - estimates only. Not individualized financial, investment, tax, or legal advice. Using it does not create an advisor-client relationship. Rules and figures change; verify against current CRA sources and consult a qualified professional. Editorial policy →