1. What is Credit Card Payoff Time?

The credit card payoff time calculation shows how long it will take to pay off your balance based on your monthly payment and interest rate. Comparing different offers helps you choose the most cost-effective credit card in Canada.

2. How Does the Calculator Work?

The calculator uses the credit card payoff formula:

Where:

• \( P \) — Principal balance (CAD)
• \( D \) — Monthly payment (CAD)
• \( R \) — Monthly interest rate (APR / 12)
• \( T \) — Time to payoff (months)

Explanation: The formula accounts for compound interest and shows how different APRs affect your payoff timeline.

3. Importance of Comparing Offers

Details: Even small APR differences can significantly impact how long you'll be in debt and how much interest you'll pay overall.

4. Using the Calculator

Tips: Enter your current balance, planned monthly payment, and APRs from two different credit card offers to compare payoff times.

5. Frequently Asked Questions (FAQ)

Q1: Why compare credit card offers?
A: Lower APR cards can save you money and help you get out of debt faster, especially if you carry a balance.

Q2: What's a good monthly payment amount?
A: Pay more than the minimum - ideally enough to cover interest plus some principal. This calculator shows how different payments affect payoff time.

Q3: Does this work for balance transfers?
A: Yes, you can compare balance transfer offers by entering the transfer amount and promotional APR rates.

Q4: What if my payment is too low?
A: The calculator will show "Never" if your payment doesn't cover the monthly interest (you'll never pay off the debt).

Q5: How accurate is this calculation?
A: It assumes fixed payments and rates. Real-world factors like fee changes or payment variations may affect actual payoff time.