Indian credit cards charge between 36% and 48% annualised on revolving balances.
About this calculator
Indian credit cards charge between 36% and 48% annualised on revolving balances. Paying only the minimum due -- usually 5% of the outstanding, with a floor -- keeps the card active and the late-fee away, but it lets the remaining 95% compound at the card rate. On a 1 lakh balance at 42% annualised, paying only the minimum stretches payoff past 12 years and costs more in interest than the original principal.
This calculator simulates the payoff month by month under the minimum-due rule, adds any extra payment you specify, and reports total months, total interest paid and the complete schedule. It uses the daily rate compounding that Indian card issuers apply, averaged over the statement cycle. The minimum-due floor handles the fixed rupee minimum that kicks in when 5% of balance would otherwise fall below it.
The single most useful thing the calculator shows is how dramatically the payoff shrinks when you add a small extra amount every month. On that same 1 lakh balance, adding 2,000 extra per month drops the payoff from 12 years to under 4, and saves roughly 80,000 in interest. Consolidating to a personal loan at 12-14% or a balance transfer to 0% for six months both beat carrying a card balance. See [[personal-loan]] for the consolidation math and [[debt-snowball]] for a multi-card strategy.
Common uses
- Understanding the real cost of carrying a 50,000 balance at 42% APR for a year
- Checking whether paying only the minimum will clear the card within a decade
- Modeling how an extra 2,000 per month changes the payoff timeline
- Comparing a card-rate balance against a 14% personal loan consolidation
- Estimating the long-term damage of the minimum-due trap for a 2 lakh balance
Frequently asked questions
How long does it take to pay off a credit card with minimum due?
At typical Indian card rates (36-48% APR) and 5% minimum due, a balance usually takes 10-20 years to clear if you pay only the minimum. Some balances never clear because the minimum-due formula keeps reducing as the balance drops, creating an infinite payoff tail.
Why is credit card interest so high in India?
Cards are unsecured revolving credit with no collateral and high default probability, and Indian regulations cap late fees but not interest rates. Issuers price in the risk and the free interest-free period through a high rate on anyone who revolves. The best defence is never revolving -- pay in full every cycle.
Is paying more than the minimum worth it?
Yes, dramatically. On a 1 lakh balance at 42% APR, paying 2,000 extra per month over the minimum typically cuts payoff time from 12 years to under 4 and saves 70-80k in interest. The extra payment goes entirely towards principal after the interest portion, so each extra rupee has an outsized effect.
Should I convert credit card debt to EMI?
Almost always yes if the card rate is above 25% and the EMI option is below 18%. Credit card EMI conversions typically charge 14-18% with a one-time processing fee. Personal loans from a bank are usually cheaper at 11-14%. The calculator in the Personal Loan section runs this comparison.
How does the minimum due get calculated?
Indian issuers typically use 5% of outstanding as minimum due with a fixed floor (often 200-500). Some add any EMI instalments, overlimit amounts and pending fees on top. Missing this minimum pulls your balance into default, adds late fees of 750-1,200 and reports the default to the credit bureau.