Credit Card Interest Calculator
Calculate interest on your credit card outstanding balance. Understand how minimum payments can lead to long-term debt and high interest costs.
Credit Card Details
Credit Card Interest Results
Total Interest Payable
Time to Pay Off
12 months
Total Amount Paid
₹ 87,850
Monthly Payment
₹ 7,321
Payment Breakdown
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Calculate NowAbout Credit Card Interest Calculator
Credit card interest can quickly accumulate if you carry a balance from month to month. Our Credit Card Interest Calculator helps you understand the true cost of paying only the minimum amount due each month.
Credit card interest rates are typically much higher than other forms of credit, ranging from 24% to 48% per annum (2% to 4% per month). When you pay only the minimum amount (usually 5% of the outstanding balance), it can take years to pay off the debt, with interest costs often exceeding the original amount borrowed.
This calculator shows you how increasing your monthly payment can significantly reduce both the time to pay off your balance and the total interest paid. Even a small increase above the minimum payment can save you thousands of rupees in interest.
Remember, the best strategy is to pay your credit card balance in full each month to avoid interest charges altogether. If that's not possible, aim to pay as much above the minimum as you can afford.
Tips to Reduce Credit Card Interest
- Pay more than the minimum: Even an extra ₹500-1000 per month can significantly reduce your payoff time and interest.
- Consider a balance transfer: Many banks offer 0% or low-interest balance transfer options for 6-12 months.
- Negotiate with your bank: If you have a good payment history, you may be able to negotiate a lower interest rate.
- Use a personal loan: For large balances, a personal loan may have a lower interest rate than your credit card.
- Stop using the card: While paying off debt, avoid adding new charges to the card.
FAQs
Credit card interest is calculated daily on the outstanding balance and charged monthly. The formula is: Daily Interest = (Outstanding Balance × Annual Rate/100) ÷ 365. Monthly interest is the sum of daily interest for that month.
Most credit cards offer a 20-50 day interest-free period if you pay the full balance by the due date. Interest is charged only if you carry a balance past the due date.
Always pay more than the minimum. Paying only the minimum extends your debt for years and costs much more in interest. Aim to pay a fixed amount that reduces your balance each month.
Some banks may waive interest as a goodwill gesture for long-term customers with good payment history. You need to contact customer service and request a waiver.