₹1,00,000 at 42% a year
Minimum payments: 18 yr 10 mo and about ₹2.04 lakh of interest. Fixed ₹5,000 a month: 2 yr 11 mo and about ₹75,000 of interest.
Credit card interest calculator
No new purchases after today. Interest is charged monthly at the yearly rate divided by 12 on the unpaid balance. The minimum due is a share of the balance, with a floor of ₹200. Late fees, GST on interest and the free credit period are not included.
1 lakh
%
Most Indian cards charge 3 to 3.5% a month.
% of balance
5 thousand
Interest if you pay a fixed amount
₹74,989
₹5,000 a month clears ₹1,00,000 in 2 yr 11 mo. Paying only the minimum takes 18 yr 10 mo and costs ₹2,03,573 in interest.
Minimum due only₹2,03,573 · 18 yr 10 mo
₹5,000 a month₹74,989 · 2 yr 11 mo
₹10,000 a month₹25,265 · 1 yr 1 mo
What carrying a credit card balance costs
The minimum amount due feels like a kindness. It is actually how the card makes its money. Pay the minimum and the rest of the bill rolls over at 3% to 3.5% a month, with new interest charged on last month's interest.
Look at ₹1 lakh at 42% a year. If you pay only the minimum, 5% of the balance with a floor of ₹200, the debt takes about 18 years and 10 months to clear and costs over ₹2 lakh in interest, more than the amount you spent. Paying a fixed ₹5,000 every month instead clears it in 2 years and 11 months, and the interest comes to about ₹75,000.
The gap comes from the shrinking payment. As the balance falls, the minimum falls with it, so you stay in debt longer. A fixed payment does not shrink, so it eats principal faster each month.
The best move is to avoid the revolve in the first place. If you are already in it, stop using the card, set a fixed payment above the minimum, and consider a personal loan or a balance transfer at a lower rate, but only if the total cost, including fees, is genuinely lower.
Sources
What this calculator does not account for
- GST on interest and late fees.
- The interest-free period.
- New spending on the card.
How this is calculated
Formula: Balance that compounds monthly
interest =balance × APR ÷ 12; new balance =balance + interest − paymentWhat the symbols mean
- APRThe yearly rate. Many Indian cards charge 36% to 45%.
- minimum dueA share of the balance, with a floor of ₹200 in this model.
Good to know
- The tool runs it month by month until the balance reaches zero.
- See how rates compound in the compound interest calculator.
Read the full methodologyFound an error? Contact us
Worked examples
Each example is worked out by the same code as the calculator above.
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<iframe src="/embed/credit-card-interest-calculator" title="Credit card interest" width="100%" height="720" style="border:0;max-width:42rem" loading="lazy"></iframe>Questions
Why is credit card interest so high?
It is unsecured credit, and Indian cards often charge 3% to 3.5% a month, which is 36% to 42% a year.
Is it ever fine to pay the minimum?
As a one-month stopgap, yes. As a habit, no: it can take close to two decades to clear a balance.
Do I pay interest if I clear the bill in full?
No, not on purchases, as long as you pay the total due by the due date. Cash withdrawals attract interest from the day you take them.
Should I move the balance to a personal loan?
Often yes, if the loan rate is far below the card's. Compare the effective rate using the personal loan EMI calculator.