How to Use Credit Card Calculators to Make Smarter Financial Decisions

You’ve probably used a calculator countless times, maybe years ago in math class or daily on your mobile device. 

That said, there are plenty of scenarios where you can use calculators outside of the classroom and your portable home screen. 

Credit card calculators cater to specific financial goals and needs. They help you choose a credit card, determine the value of your rewards, assess how long it will take you to cover your balance, and show you how much you can save when you transfer a carried balance to a balance transfer credit card.

To uncover the different types of credit card calculators in Canada and how they can assist you in making smarter financial decisions, keep reading.

Different Credit Card Calculators in Canada

Canada is stocked with plenty of financial tools and calculators to help you manage your money.

Common credit card calculators include:

• Credit Card Comparison Tools
• Credit Card Rewards Calculators
• Credit Card Payment Calculators
• Credit Card Interest and Debt Calculators 
• Balance Transfer Calculators 

These calculators determine card values, reward values, payment timelines, interest charges, and balance transfer savings.

How Credit Card Calculators Work to Your Advantage

As mentioned, each credit card calculator comes with a specific function that helps you with your financial decisions.

For your convenience, we’ve outlined these functions below:

Credit Card Comparison Tools

Credit card comparison tools rank, compare, categorize, and break down different credit cards.

Our credit card finder tool provides a catalogue of the top credit cards available in Canada. To narrow your search for the perfect contender, simply plug in your spending habits, credit score, income, and card preferences. Afterwards, hit “Update Results” to generate a list of cards that fit your profile and criteria.

Torn between two cards? We’ve got a tool for that! Check out our credit card comparison tool to compare your options side-by-side.

Credit Card Rewards Calculators

Credit card reward calculators are built to help spenders determine the potential value of their rewards from a particular card.

Cashback credit cards are pretty straightforward, and so are their calculations. Cashback cards work by returning a percentage of your eligible purchases. These percentages are assigned to specialized spending categories like groceries, gas, or dining. If your cashback card offers groceries as a category, you’ll earn an associated percentage back on every eligible grocery run. To simplify spending optimization, some cashback cards come with flat rates, meaning you’ll earn back a set percentage on all eligible purchases. Once you collect this cashback, you can often choose whether you deposit, save, or invest your earnings. 

Cashback calculators usually ask you to input your monthly spending, often broken down by category, to determine which cards could earn you the most return. 

Points credit cards are a bit more nuanced, which is why points calculators are so handy. When you pay attention to the values calculated within a points calculator, you practice one very important skill: point optimization.  

A points calculator estimates the value of your points based on your card’s loyalty program. Each loyalty program comes with its own redemption categories, which are assigned different values per point. For example, your card’s loyalty program might include travel and gift cards as two of its redemption opportunities, but redeeming your points towards travel is typically more valuable than redeeming your points towards gift cards.

Our points calculator allows you to select your loyalty program and input the amount of points you have to determine the best ways to spend your earnings. At the bottom of our calculations, we also provide an in-depth overview of each loyalty program, including its top credit cards and each redemption category. 

Don’t have a points card yet? No worries! You can also use this tool to browse different loyalty programs and point values to help you decide which credit card suits you best.

Credit Card Payment Calculators

If you ever need help figuring out how long it will take to cover your credit card balance, try a credit card payment calculator!

You can find this kind of calculator on the Government of Canada website. This version allows you to input your credit card balance and annual interest rate, then compares 3 different payment options to pay back what you owe:

• Option A: Provide your minimum monthly amount or your minimum monthly percentage (whichever is greater)
• Option B: Include any additional monthly payments and the first monthly payment amount
• Option C: Record your fixed monthly payment

After you’ve filled in all of these options, hit calculate to compare all three. 

Credit Card Interest and Debt Calculators

Similar to credit card payment calculators, credit card interest calculators show you how much you owe, how long it will take to pay it off, and how much interest you’ll accumulate if you don’t pay your balance in full each month.

MoneySense offers a credit card interest calculator that takes your current credit card balance, your card’s interest rate, and your monthly payment to come up with your total interest owed and how much time it will take you to pay off your balance. 

Similarly, Credit Canada features a debt repayment calculator that takes your debt balance, your debt interest rate, and your monthly payment and calculates how long it will take you to get out of credit card debt. 

All in all, these calculators help you curate a plan to get back on track financially. 

Balance Transfer Calculators 

A balance transfer calculator estimates your potential interest savings when you transfer your current carried credit card balance over to a balance transfer credit card.

Here’s how to use our balance transfer calculator:

1. Input your current credit card balance into the first filter
2. In the next filter, provide the length of your interest term
3. Finally, choose between multiple credit cards for an in-depth comparison – the best options will be pre-selected for you

Ultimately, a balance transfer credit card calculator shows you how much you can save when you swap your traditional credit card’s interest rates for a balance transfer credit card’s promotional and overall lower interest rates.

Conclusion

Credit card calculators help you determine which card to apply for, how much your rewards are worth, how long it will take you to pay off your balance(s), and how much you can save on interest by transferring your debt to a balance transfer credit card. 

These calculations equip spenders with the necessary insight to make mindful, knowledgeable, and actionable financial advancements.

Take advantage of the credit card calculators featured on our website and check out the other calculators we’ve linked in this post to help you stay on top of your spending.

Frequently Asked Questions (FAQ)

Which type of credit card calculator is best for determining how long it will take to pay off my credit card balance?

For an estimate of how long it will take to pay off your credit card balance, use a credit card payment calculator. Credit card payment calculators predict how long it will take you to cover your credit card balance based on how much you currently owe, your card’s interest rates, and your intended monthly payment. 

How can a rewards calculator help me pick the right credit card?

Credit card rewards calculators estimate the value of your credit card rewards and show you which redemption categories are most worthwhile. You can use credit card rewards calculators to determine which credit cards will maximize your spending the most.

Which calculator can help me save on interest if I carry a balance?

As the name implies, balance transfer calculators estimate how much you can save by transferring your carried balance on your current card to a balance transfer credit card. These calculators factor in your balance, your current card’s interest rate, and each available balance transfer card’s promotional rates and terms.

Are these credit card calculators only beneficial after I’ve picked a credit card?

Absolutely not! You can use credit card calculators like credit card comparison tools and credit card rewards calculators to help you figure out which card is best for you in terms of value. These tools help you save time during the selection process and prevent unnecessary hard credit checks.