Credit Card Payoff Calculator

In Canada, most major bank cards charge 19.99–22.99% APR. Low-rate cards (TD, CIBC) offer 12.99%. In the USA, average APR in 2025 is ~21%. Anything below 15% is considered low. Store cards often charge 29.99%+. If carrying a balance, look for a low-rate or balance transfer card.

Balance transfer cards offer 0% promotional rates for 6–21 months (Canada) or up to 21 months (USA). On a $5,000 balance, moving to 0% for 12 months saves ~$1,000 in interest. Key: pay it off before the promo ends — revert rates are usually 19.99%+. Most charge a 1–3% transfer fee.

Always pay more than the minimum. Minimum payments are typically 2–3% of balance or $10 minimum. This keeps you in debt for decades. The avalanche method (highest APR first) saves the most interest. The snowball method (smallest balance first) provides psychological wins.

Yes — credit utilization (balance ÷ limit) makes up ~30% of your credit score. Keeping utilization below 30% is ideal; below 10% is excellent. Paying down balances quickly improves your score within 1–2 reporting cycles (usually monthly).

For credit cards they're usually the same — APR (Annual Percentage Rate) reflects the yearly cost. Unlike mortgages or personal loans, credit cards typically don't have additional fees baked into APR. However, annual card fees are separate. Always compare APR when shopping for cards.