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Credit card interest calculator
Card interest looks small per month and enormous per year. Find out how long your balance will take to clear and what it will cost.
Why card debt grows so fast
Most Indian cards charge 3% to 3.75% a month on unpaid balances, which is 36% to 45% a year before compounding, plus 18% GST on the interest. A ₹1 lakh balance at 3.75% a month, paid down at ₹5,000 a month, takes about four years and two months to clear and costs roughly ₹1.5 lakh in interest and GST, more than the original spend.
Paying only the minimum due keeps the card active but barely touches the balance. Interest also starts on new purchases from the day you buy once you carry a balance, so the interest-free period disappears.
The fastest ways out
- Pay more than the minimum every month; even ₹2,000 extra cuts the time sharply. Move the slider above to see.
- Swap the balance for a cheaper personal loan or the card’s own EMI conversion, then stop using the card until it is clear.
- Clear the highest-rate card first if you have several.
Does a card balance hurt my credit score?
High use of your limit, above about 30%, and any late payment both lower your score. Paying in full on time is the best thing you can do for it. See the credit score guide.