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How Credit Card Minimum Payments Work in Canada
Why paying only the minimum takes decades: $5,000 at 20.99% takes 22 yrs 2 mo and $6,697 in interest at a 3% minimum, versus 2 yrs 1 mo at $250 a month.
How is the minimum payment calculated in Canada?
Each issuer sets its own formula, typically a small percentage of the balance (about 2%–3%) or a flat $10, plus interest and fees. Your statement must show how long it would take to pay off the balance with minimum payments only.
How long does it take to pay off a credit card with minimum payments?
At 20.99% and a 3% minimum: $3,000 takes 18 yrs 9 mo ($3,900 interest), $5,000 takes 22 yrs 2 mo ($6,697), $10,000 takes 26 yrs 9 mo ($13,689).
| Balance at 20.99% | Minimum only (3%) | Interest | Fixed payment for 3 years | Interest |
|---|---|---|---|---|
| Top$3,000 | 18 yrs 9 mo | $3,900 | $113.01/mo | $1,068 |
| $5,000 | 22 yrs 2 mo | $6,697 | $188.35/mo | $1,781 |
| $10,000 | 26 yrs 9 mo | $13,689 | $376.70/mo | $3,561 |
What happens if I miss a minimum payment?
You may pay a late fee, lose a promotional rate and get reported as late after 30 days, which can lower your score and stays on your report up to 6 years. Two missed payments in a year can trigger a higher penalty rate on some cards.
What should I pay instead of the minimum?
Pick a fixed amount you can afford and keep paying it as the balance falls. To be debt-free in 3 years, divide roughly by 30 to 36 depending on your rate; the payoff calculator gives the exact number.
Official sources and further reading
Terms vary by product. Confirm the provider’s current terms before acting. This guide does not predict approval, realized value or credit-score changes. How WalletReturn calculates value