Credit cards are interest-free only if you pay the full bill by the due date. If you pay less, interest is charged at around 3 to 4% a month, which is 40 to 50% a year, one of the costliest loans there is. This calculator shows how long your dues will take to clear and how much interest you will pay along the way.
How to use the credit card payoff calculator
- Enter your current credit card dues.
- Enter the monthly interest rate from your card statement (often 3.5% to 3.75%).
- Enter the fixed amount you will pay every month. Assume you stop using the card while you repay.
How it is calculated
Each month, interest is added on the outstanding dues, and then your payment is subtracted. The calculator repeats this until the dues reach zero. It does not include late fees or the 18% GST charged on interest, which make the real cost higher.
Example
You owe ₹1,00,000 at 3.5% a month (42% a year, about 51% with monthly compounding).
| Monthly payment | Time to clear | Total interest |
|---|---|---|
| ₹3,500 | Never | Grows forever |
| ₹5,000 | 2 years 11 months | ₹74,989 |
| ₹10,000 | 1 year 1 month | ₹25,265 |
At ₹3,500 a month, the whole payment goes to interest, and the dues never fall. Doubling the payment from ₹5,000 to ₹10,000 saves almost ₹50,000 in interest.
The minimum due trap
The "minimum amount due" on your statement is often just 5% of the dues. Paying only that keeps your account in good standing, but interest keeps piling up on everything else, and the interest-free period on new purchases stops too.
Ways to get out faster
- Pay more than the minimum, even a little, and stop new spending on the card.
- Convert the dues to an EMI with your card issuer, usually at a lower rate.
- Take a cheaper personal loan to pay off the card, then repay the loan. Check the real rate with the flat vs reducing rate calculator.
FAQ
What interest rate do credit cards charge in India?
Most cards charge about 3% to 3.75% a month on unpaid dues, which is roughly 36% to 45% a year before compounding.
Is it okay to pay only the minimum due?
It avoids a late fee, but interest is charged on the full outstanding amount, so the debt shrinks very slowly or not at all.
Is GST charged on credit card interest?
Yes. GST at 18% is charged on interest and fees, which this calculator does not include.
Should I use savings to clear credit card debt?
Usually yes, if you keep a basic emergency fund. Almost no safe investment earns more than the 40% or so a card costs you. See the emergency fund calculator.