≈ 42% per year
The amount you'll pay every month until the card is cleared.
Time to clear
Enter your balance, rate and payment
Quick Facts
- • Typical Indian card rate: 3.0%–3.75%/month (≈ 36%–45% p.a.).
- • Pay the full bill by the due date → zero interest.
- • Paying only the minimum can keep you in debt for years.
- • 18% GST applies on the interest charged.
How Credit Card Interest Works
Monthly Interest
Balance × (MPR ÷ 100)
e.g. ₹50,000 × 3.5% = ₹1,750 / month
Annual Rate (APR)
≈ MPR × 12
e.g. 3.5% × 12 = 42% per year
The Minimum-Payment Trap
The "minimum amount due" on your statement is typically just 5% of the outstanding balance. It is designed to keep your account regular — not to clear your debt. Because the monthly interest can be 3–4% of the balance, paying only the minimum means most of your payment goes to interest and the principal barely moves. On a ₹50,000 balance at 3.5% per month, paying only the minimum can take well over a decade and cost more in interest than the original spend.
Worked Example
Carry ₹50,000 at 3.5% per month. Pay a fixed ₹5,000 every month: the first month's interest is ₹1,750, so ₹3,250 reduces the principal. Repeat and the card clears in about 12 months with roughly ₹9,000–10,000 of total interest. Switch to paying only the 5% minimum and the same balance can take 100+ months. Use the two modes above to compare your own numbers.
Why It's Useful
- See the true cost of revolving a balance instead of paying in full.
- Find a fixed monthly payment that clears the card by a target date.
- Decide whether converting the balance to a lower-rate EMI is worth it.
- Avoid the minimum-due trap with eyes open.
Frequently Asked Questions
Common credit card interest questions