ToolsCrateAll tools

Credit Card Payoff Calculator

Credit cards charge 3 to 4% a month, which is 42 to 48% a year. Enter your balance and what you can pay to see how long the debt takes to clear and what it really costs.

Works out to 42.0% a year

Debt-free in

1 year 1 month

Interest paid

₹30,000

Total paid

₹1,30,000

If you only pay the minimum due

Paying 5% of the balance each month would take 20 years 8 months and cost ₹2,27,000 in interest, on a balance of just ₹1,00,000.

Indian credit cards typically charge 3 to 4% a month, which is 42 to 48% a year. This assumes no new spending on the card and no late fees.

Frequently Asked Questions

Why is paying only the minimum due so expensive?

The minimum is usually 5% of the balance, and interest is charged on the rest at 3 to 4% a month. Because the minimum falls as the balance falls, the debt drags on for years — often costing more in interest than the original purchase.

What interest rate do Indian credit cards charge?

Typically 3.0 to 3.75% per month, which works out to 42 to 49% per year. It is one of the most expensive forms of borrowing available, well above personal loans at 11 to 18%.

Does the interest-free period help?

Only if you clear the statement balance in full. The moment you carry any balance forward, the interest-free grace period is withdrawn and interest is charged on new purchases from the transaction date.

Should I convert the balance to EMI?

Usually yes. Card EMI conversion typically runs at 13 to 18% a year against 42%+ on a revolving balance. A personal loan or a top-up on an existing loan is often cheaper still.