Debt
Credit card payoff: what a fixed monthly payment changes
Compare a fixed monthly credit-card payment with a slightly larger one, and understand the assumptions behind the payoff timeline.
A fixed payment above the monthly interest can shorten the payoff timeline. Use the APR and payment from your own statement, and keep new purchases out of the scenario.
Model a fixed payment, not the card minimum
The Money Figures calculator asks for a fixed dollar payment each month. It does not try to reproduce the minimum-payment formula on your statement. FCAC notes that minimum payments can be calculated in different ways, and paying only the minimum generally means a longer payoff and more interest.
Use the minimum-payment amount on your actual statement as a floor, then test a fixed payment you can realistically make every month.
What C$50 more does in the model
With a C$5,000 balance at 19.99% APR and no new charges, a C$200 monthly payment produces an estimated payoff time of 2 years 9 months and C$1,521.02 of total interest.
At C$250 a month, the model estimates 2 years 1 month to pay off and C$1,132.29 of interest. That is 8 months sooner and about C$388.72 less interest in this simplified scenario.
Your statement can behave differently
Actual credit cards may calculate interest daily and may apply different rates to purchases, cash advances or other transactions. FCAC also notes that payment-allocation rules can differ when several interest rates apply.
This calculator uses one APR for the whole balance and applies interest monthly. It excludes new purchases, fees, grace-period effects, promotional-rate changes and missed-payment penalties. Use it as a planning comparison, not as a reconstruction of an issuer ledger.
Check the required minimum separately
FCAC says the credit agreement tells you how the issuer calculates the minimum payment. It also notes that, since 1 August 2025, the minimum payment for Quebec residents is 5%.
Money Figures deliberately does not calculate a province-specific minimum-payment rule. Confirm the required payment and due date on your statement, then enter the fixed payment you want to test.
Try it with your own numbers
The worked examples use our planning models, not live rates or lender quotes. Open a tool, change the inputs and compare the assumptions before acting.
Official sources and review status
Sources checked 7 October 2026. Independent financial review is pending. This guide provides general information and model examples, not personal financial, tax or lending advice. See our methodology.