Credit Card Interest Calculator for Canadians

This Page's Content Was Last Updated: December 29, 2022
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+ interest
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C.
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Results

Option A

If You Only Pay the Minimum Every Month

Total Interest Paid $0
Time Required to Pay Off BalanceNo difference
Total Amount Paid0

Option B

If You Pay Minimum Monthly Payment + an Additional Amount Every Month

Total Interest Paid $0
Time Required to Pay Off BalanceNo difference
Total Amount Paid0
Time Saved vs. Option ANo difference
Amount Saved vs. Option A0

Option C

If You Pay a Fixed Amount Every Month

Total Interest Paid $0
Time Required to Pay Off BalanceNo difference
Total Amount Paid0
Time Saved vs. Option ANo difference
Amount Saved vs. Option A0

About this calculator:

  • The calculator assumes that you have no previous pending balance
  • The interest rates for the most popular credit cards in Canada have been pre-entered. If you cannot find your credit card in our list, please enter the interest rate manually.
  • The interest rates used in the calculator are the Annual Percentage Rates (APR) for purchases. For Balance Transfers, please enter the interest rate manually.
  • This calculator is for educational purposes only. Your card issuer’s calculations may differ.

What is Credit Card Interest?

One of the ways in which Credit Card companies make money is by charging the cardholders an interest on the money that they borrow. The interest is indicated as an Annual Percentage Rate (APR). The APR is the total annual interest that you will pay if you carry a balance on your credit card.

The interest rate varies from card to card; and many cards also charge different rates for purchases and cash advances. The interest rate is often a fixed number; however, for some cards it may vary depending on the prime rate, similar to mortgage rates. For example, if a card’s interest rate is prime rate + 8%, and the current prime rate is 5%, the interest rate would be 13%.

Most credit cards offer an interest-free grace period, usually 21 days in Canada. If you pay off your credit card bill in full during this time, you will not have to pay any interest. Majority of the credit cards in Canada offer rewards and benefits such as travel rewards, rewards on grocery shopping, rewards on gas, and so on. You can take advantage of these benefits without having to worry about paying interest, if you keep paying off your credit card balance in full by the due date mentioned on your statement.

Some credit cards also offer a promotional interest rate for a few months. For example, a credit card may offer an interest rate of 5% for the first 9 months, after which the interest rate might be raised to 12.99%.

How Does Credit Card Interest Work?

Most major financial institutions in Canada calculate interest daily by multiplying the balance at the end of the day by the Daily Periodic Rate (DPR). The daily periodic rate is the APR divided by the number of days in the year. If your APR is 19.99%, the DPR is 19.99%/365 = 0.0547671%. For leap years, the APR is divided by 366. The interest is calculated daily but is added to the debt once a month.

Some financial institutions use the Average Daily Balance for calculation. This is the average of balance on each day of the billing cycle. In this case,

How to calculate credit card interest using DPR and Average Daily Balance?

  1. Determine the DPR: Assume that the APR on your credit card is 20%. The DPR on your credit card would then be:
  2. Calculate your average daily balance: The average daily balance is based on the balance on each day of the billing cycle. Assume that you had a balance of $500 at the beginning of a billing cycle, and you make a purchase of $100 on day 10 and a purchase of $100 on day 20 of the billing cycle. If the number of days in the billing cycle is 30, then the daily balance for each of the days would be as follows:
    • Day 1 - Day 9 (9 days) - $500
    • Day 10 - Day 19 (10 days) - $600
    • Day 20 - Day 30 (11 days) - $700
    To calculate the average daily balance, you have to add the balance for each day and divide it by the total number of days in the billing cycle, thus,
  3. Calculate the Interest Charges: Once you have the DPR and average daily balance, you can use the following formula for calculating credit card interest:
  4. This will be the amount of interest you will pay for the billing cycle.

Some financial institutions might use a compound interest method for interest calculation, wherein the interest is compounded daily. In such a case, an interest is charged on unpaid interest as well. Not paying off your balance for a long time can turn out to be very expensive for a cardholder. Thus, it is always advisable to pay off your credit card balance in full at the end of every billing cycle, within the interest-free grace period.

Increased Interest Rates

The interest rates can increase under certain conditions. If you fail to satisfy the minimum payment criteria for a timeframe specified in your cardholder’s agreement, your financial institution may start charging you a higher interest rate.

For example, some credit card issuers increase the interest rate for cardholders who miss the minimum payment at least twice in a 12 month period. Assuming that your current interest rate is 19.99% and you are required to pay at least 5% of the balance every month. If you miss that payment twice in a 12 month period, the credit card issuer may increase the interest rate to 24.99% for the next 12 billing periods. The interest rate might be reduced back to normal if you pay off at least the minimum for these 12 billing cycles.

The increased rates vary from card to card and so do the conditions for increasing the interest rates. Some card issuers might increase the interest rate if you miss even one minimum payment, some others might increase the interest rate if you miss two consecutive minimum payments.

Some financial institutions also issue higher interest rate credit cards to individuals who don’t meet the qualification requirements for a credit card that they have applied for.

Interest Rates for Popular Credit Cards in Canada

Financial InstitutionCredit CardInterest Rate
AMEXAmex Cobalt

Purchases: 20.99%

Cash Advance: 21.99%

Increased interest rates if you miss 2 payments in a 12 month period- 23.99%

Increased interest rates if you miss 2 payments in a 12 month period- 26.99%

Amex SimplyCash Preferreds

Purchases: 20.99%

Cash Advance: 21.99%

Increased interest rates if you miss 2 payments in a 12 month period- 23.99%

Increased interest rates if you miss 2 payments in a 12 month period- 23.99%

Amex SimplyCash

Purchases: 20.99%

Cash Advance: 21.99%

Increased interest rates if you miss 2 payments in a 12 month period- 24.99%

Increased interest rates if you miss 2 payments in a 12 month period- 26.99%

American Aeroplan Reserve

Purchases: 20.99%

Cash Advance: 21.99%

Increased interest rates if you miss 2 payments in a 12 month period- 23.99%

Increased interest rates if you miss 2 payments in a 12 month period- 26.99%

American Express Green

Purchases: 20.99%

Cash Advance: 21.99%

Increased interest rates if you miss 2 payments in a 12 month period- 23.99%

Increased interest rates if you miss 2 payments in a 12 month period- 26.99%

BMOBMO CashBack Mastercard

Purchases: 20.99%

Cash Advance: 22.99% (21.99% for Quebec residents)

Increased interest rate if you miss 2 or more minimum payments in any 12 month period -

Purchases: 24.99%

Cash Advance: 27.99%

BMO CashBack World Elite Mastercard

Purchases: 20.99%

Cash Advance: 23.99% (21.99% for Quebec residents)

Increased interest rate if you miss 2 or more minimum payments in any 12 month period -

Purchases: 25.99%

Cash Advance: 28.99%

BMO Eclipse Visa Infinite

Purchases: 20.99%

Cash Advance: 23.99% (21.99% for Quebec residents)

Increased interest rate if you miss 2 or more minimum payments in any 12 month period -

Purchases: 25.99%

Cash Advance: 28.99%

BMO Preferred Rate Mastercard

Purchases: 12.99%

Cash Advance: 25.99%

Increased interest rate if you miss 2 or more minimum payments in any 12 month period -

Purchases: 20.99%

Cash Advance: 23.99%

BMO Rewards Mastercard

Purchases: 20.99%

Cash Advance: 22.99% (21.99% for Quebec residents)

Increased interest rate if you miss 2 or more minimum payments in any 12 month period -

Purchases: 24.99%

Cash Advance: 27.99%

BMO Ascend World Elite Mastercard

Purchases: 20.99%

Cash Advance: 23.99% (21.99% for Quebec residents)

Increased interest rate if you miss 2 or more minimum payments in any 12 month period -

Purchases: 25.99%

Cash Advance: 28.99%

BMO AIR MILES Mastercard

Purchases: 20.99%

Cash Advance: 22.99% (21.99% for Quebec residents)

Increased interest rate if you miss 2 or more minimum payments in any 12 month period -

Purchases: 24.99%

Cash Advance: 27.99%

Canadian Tire BankTriangle Mastercard

Purchases: 19.99%

Cash Advance: 22.99% (21.99% for Quebec residents)

Capital OneCapital One Guaranteed Mastercard

Purchases: 19.80%

Cash Advance: 21.90%

Increased interest rate if you miss 2 or more minimum payments in any 12 month period -

25.90%

CIBCCIBC Aventura Visa Infinite

Purchases: 20.99%

Cash Advance: 22.99% (21.99% for Quebec residents)

Increased interest rate if you miss 2 or more minimum payments in any 12 month period -

Purchases: 24.99%

Cash Advance: 27.99%

CIBC Dividend Visa

Purchases: 20.99%

Cash Advance: 22.99% (21.99% for Quebec residents)

Increased interest rate if you miss 2 or more minimum payments in any 12 month period -

Purchases: 24.99%

Cash Advance: 27.99%

CIBC Costco Mastercard

Purchases: 19.75%

Cash Advance: 21.49%

Increased interest rate if you miss 2 or more minimum payments in any 12 month period -

Purchases: 24.99%

Cash Advance: 27.99%

CIBC Select Visa

Purchases: 13.99%

Cash Advance: 13.99%

Increased interest rate if you miss 2 or more minimum payments in any 12 month period -

Purchases: 19.99%

Cash Advance: 19.99%

CIBC Aeroplan Visa

Purchases: 20.99%

Cash Advance: 22.99% (21.99% for Quebec residents)

Increased interest rate if you miss 2 or more minimum payments in any 12 month period -

Purchases: 24.99%

Cash Advance: 27.99%

DesjardinsDesjardins Cash Back Visa

Purchases: 19.90%

Cash Advance: 19.90%

Desjardins Odyssey World Elite Mastercard

Purchases: 19.90%

Cash Advance: 19.90%

HSBCHSBC World Elite Mastercard

Purchases: 19.90%

Cash Advance: 22.90%

Increased interest rate if you miss 2 consecutive minimum payments -

Purchases: 24.90%

Cash Advance: 27.90%

Laurentian BankVisa Black Reward Me

Purchases: 19.99%

Cash Advance: 21.99%

Laurentian Bank Visa Infinite

Purchases: 19.99%

Cash Advance: 21.99%

Manulife BankManulifeMONEY+ Visa Infinite Card

Purchases: 19.99%

Cash Advance: 21.99%

Increased interest rate if you miss 2 or more minimum payments in any 12 month period -

Purchases: 24.99%

Cash Advance: 27.99%

MBNAMBNA Rewards Credit Card

Purchases: 19.99% (20.99% for Quebec residents)

Cash Advance: 24.99% (20.99% for Quebec residents)

Increased interest rate if you miss 2 or more minimum payments in any 12 month period -

Purchases: 24.99%

Cash Advance: 29.99%

Increased interest rate after a second twice a year payment default -

Purchases: 29.99%

Cash Advance: 29.99%

MBNA Smart Cash Platinum Plus Mastercard

Purchases: 19.99% (20.99% for Quebec residents)

Balance Transfers: 24.99% (20.99% for Quebec residents)

Increased interest rate if you miss 2 or more minimum payments in any 12 month period -

Purchases: 24.99%

Cash Advance: 29.99%

Increased interest rate after a second twice a year payment default -

Purchases: 29.99%

Cash Advance: 29.99%

MeridianMeridian Visa Infinite Cash Back Card

Purchases: 19.50%

Cash Advance: 21.99%

Increased interest rate if a cardholder is 30 or more days delinquent -

24.90%

National BankNational Bank World Elite Mastercard

Purchases: 20.99%

Cash Advance: 22.49%

Increased interest rate if you miss 2 or more minimum payments in any 12 month period -

Purchases: 25.99%

Cash Advance: 27.49%

National Bank Echo Mastercard

Purchases: 20.99%

Cash Advance: 22.49%

Increased interest rate if you miss 2 or more minimum payments in any 12 month period -

Purchases: 25.99%

Cash Advance: 27.49%

National Bank mycredit Mastercard

Purchases: 20.99%

Cash Advance: 22.49%

Increased interest rate if you miss 2 or more minimum payments in any 12 month period -

Purchases: 25.99%

Cash Advance: 27.49%

NeoNeo Mastercard

Purchases: 19.99%

Cash Advance: 22.99% (21.99% for Quebec residents)

Increased interest rate if you miss 2 consecutive minimum payments -

Purchases: 24.99%

Cash Advance: 26.99%

PC FinancialPC Financial Mastercard

Purchases: 20.97%

Cash Advance: 22.97% (21.97% for Quebec residents)

Increased interest rate if you miss 2 consecutive minimum payments -

Purchases: 25.97%

Cash Advance: 27.97%

RBCRBC Avion Visa Infinite

Purchases: 19.99%

Cash Advance: 22.99% (21.99% for Quebec residents)

Increased interest rate if you miss 2 or more minimum payments in any 12 month period -

Purchases: 24.99%

Cash Advance: 27.99% (26.99% for Quebec residents)

RBC ION Visa

Purchases: 19.99%

Cash Advance: 22.99% (21.99% for Quebec residents)

Increased interest rate if you miss 2 or more minimum payments in any 12 month period -

Purchases: 24.99%

Cash Advance: 27.99% (26.99% for Quebec residents)

RBC Cash Back Mastercard

Purchases: 19.99%

Cash Advance: 22.99% (21.99% for Quebec residents)

Increased interest rate if you miss 2 or more minimum payments in any 12 month period -

Purchases: 24.99%

Cash Advance: 27.99% (26.99% for Quebec residents)

RBC Visa Classic Low Rate Option

Purchases: 12.99%

Cash Advance: 12.99%

Increased interest rate if you miss 2 or more minimum payments in any 12 month period -

Purchases: 20.99%

Cash Advance: 20.99%

WestJet RBC World Elite Mastercard

Purchases: 19.99%

Cash Advance: 22.99% (21.99% for Quebec residents)

Increased interest rate if you miss 2 or more minimum payments in any 12 month period -

Purchases: 24.99%

Cash Advance: 27.99% (26.99% for Quebec residents)

ScotiabankScotia Gold Amex

Purchases: 20.99%

Cash Advance: 22.99%

Increased interest rate if you miss 2 or more minimum payments in any 12 month period -

Purchases: 25.99%

Cash Advance: 27.99%

Scotia Momentum Visa Infinite

Purchases: 20.99%

Cash Advance: 22.99%

Increased interest rate if you miss 2 or more minimum payments in any 12 month period -

Purchases: 25.99%

Cash Advance: 27.99%

Scotiabank Passport Visa Infinite

Purchases: 20.99%

Cash Advance: 22.99%

Increased interest rate if you miss 2 or more minimum payments in any 12 month period -

Purchases: 25.99%

Cash Advance: 27.99%

Scotiabank Platinum Amex

Purchases: 9.99%

Cash Advance: 9.99%

Increased interest rate if you miss 2 or more minimum payments in any 12 month period -

Purchases: 19.99%

Cash Advance: 19.99%

Scotiabank Scene+ Visa

Purchases: 19.99%

Cash Advance: 22.99%

Increased interest rate if you miss 2 or more minimum payments in any 12 month period -

Purchases: 24.99%

Cash Advance: 27.99%

Simplii FinancialSimplii Financial Cash Back Visa Card

Purchases: 19.99%

Cash Advance: 22.99%

Increased interest rate if you miss 2 or more minimum payments in any 12 month period -

Purchases: 24.99%

Cash Advance: 27.99%

TangerineTangerine Money-Back Credit Card

Purchases: 19.95%

Cash Advance: 19.95%

Increased interest rate if you miss 2 consecutive minimum payments -

Purchases: 24.95%

Cash Advance: 27.95%

TDTD Cash Back Visa Infinite

Purchases: 20.99%

Cash Advance: 22.99% (20.99% for Quebec residents)

Increased interest rate if you miss 2 or more minimum payments in any 12 month period -

Purchases: 25.99%

Cash Advance: 27.99%

TD First Class Travel Visa Infinite

Purchases: 20.99%

Cash Advance: 22.99% (20.99% for Quebec residents)

Increased interest rate if you miss 2 or more minimum payments in any 12 month period -

Purchases: 25.99%

Cash Advance: 27.99%

TD Aeroplan Visa Infinite

Purchases: 20.99%

Cash Advance: 22.99% (20.99% for Quebec residents)

Increased interest rate if you miss 2 or more minimum payments in any 12 month period -

Purchases: 25.99%

Cash Advance: 27.99%

TD Cash Back Visa Card

Purchases: 19.99% (20.99% for Quebec residents)

Cash Advance: 22.99% (20.99% for Quebec residents)

Increased interest rate if you miss 2 or more minimum payments in any 12 month period -

Purchases: 24.99% (25.99% for Quebec residents)

Cash Advance: 27.99%

TD Rewards Visa Card

Purchases: 19.99% (20.99% for Quebec residents)

Cash Advance: 22.99% (20.99% for Quebec residents)

Increased interest rate if you miss 2 or more minimum payments in any 12 month period -

Purchases: 24.99% (25.99% for Quebec residents)

Cash Advance: 27.99%

Bottom Line

As per Statistics Canada’s Monthly Credit Aggregates Report released in August 2022, the credit card debt with chartered banks rose by 1% (+$0.8 billion) in July 2022. Credit card interest is the additional amount that you have to pay when you don’t pay off your credit card bill by the due date; and it keeps adding to the debt you owe. Borrowing more than you can pay off can attract heavy interest charges and you could end up paying off your debt for years if not decades. Owning a credit card comes with certain rights and responsibilities that you should be aware of; and you should always use your credit card carefully.

The calculators and content on this page are provided for general information purposes only. WOWA does not guarantee the accuracy of information shown and is not responsible for any consequences of the use of the calculator.