Credit Card Interest Calculator

Indian credit card rates range from 24–48% APR because unsecured revolving credit has no collateral. The RBI does not cap credit card rates. Banks price in high default risk on revolving balances. This is 3–5x higher than personal loan rates (11–18%).

Paying only the minimum due keeps you paying interest for years. On ₹50,000 at 36% APR, paying a minimum of 5% of the balance plus that month’s interest and GST (at least ₹250) takes 71 months (about 6 years) and costs ₹29,023 in interest plus ₹5,224 GST. A fixed ₹2,500 a month takes 36 months and costs ₹32,606 interest plus ₹5,869 GST. Always pay the full statement amount.

Yes — if you pay the FULL statement outstanding by the due date every month, you pay zero interest (20–50 day interest-free period). Interest kicks in only when you carry a balance (revolve). If you pay less than the full amount, you lose the interest-free period: interest runs from each transaction date, but under the RBI Credit Card Master Direction it can be charged only on the outstanding amount after adjusting your payment — not on the amount you already paid. New purchases also get no interest-free period until the old balance is cleared.

Interest accrues daily from the transaction date if you revolve. Formula: Outstanding × (APR/365) × days. For 36% APR: daily rate is 0.0986%. On ₹50,000, that is ₹49/day or ₹1,500/month. Banks usually quote the rate per month (about 2–3.75% a month), and 18% GST is added on the interest, so ₹1,500 of interest costs you ₹1,770.

Two proven methods: (1) Avalanche — pay highest-rate card first, minimums on rest. Saves most interest. (2) Snowball — pay smallest balance first for psychological wins. Consider a balance transfer to a 0% card or a personal loan at 12–15% to convert high-rate CC debt.