Credit Card Interest Calculator for Canada

Credit cards in Canada typically charge 19–23% APR. This page explains how Canadian credit card interest works and what it really costs you.

How Credit Card Interest Works in Canada

1. Your APR (19–23% in Canada) is divided by 365 to get the daily rate
2. Each day, the daily rate is applied to your outstanding balance
3. Interest accumulates and is added to your next statement
4. If you don't pay the full statement balance, you lose the grace period (21 days (minimum by law) in Canada)

The Real Cost at 19–23% APR

At the mid-range of Canada's typical APR (21%), a C$4,000 balance with minimum-only payments could cost you over C$7,200 in total — nearly double the original amount.

How Extra Payments Save You Money

Even small increases above the minimum payment make a huge difference. Doubling your minimum payment on a 19–23% APR card can cut your payoff time by more than half.

Key Facts for Canada

• Typical APR range: 19–23%
• Interest calculation: Daily balance method
• Grace period: 21 days (minimum by law)
• Minimum payment: Typically 2–3% of balance or $10 floor, plus any overdue amounts
• Major issuers: TD Bank, RBC, Scotiabank, BMO, CIBC