Outstanding Dues
The total unpaid amount from your credit card bill.
Yearly interest charged by your bank (Typical: 36% to 42%).
Smallest % required to pay to avoid late fees (Standard: 5%).
The amount you plan to pay every month to clear this debt.
Days past your due date used to calculate immediate daily interest.
Immediate Interest Charges
₹0This is the monthly cost of borrowing added to your current bill.
Min. Amount Due
₹0
Minimum mandatory payment required by bank.
Time to Clear Debt
0 Months
Estimated time until your balance hits zero.
Total Amount to be Paid
₹0
Principal + Cumulative Interest
Interest Per Day
₹0
Cost of carrying balance daily
What is Credit Card Interest?
Credit card interest is one of the most expensive forms of borrowing in India, with annual rates often running between 36% and 42%. While credit cards give you a 45-day interest-free period, carrying forward even ₹500 to the next month triggers daily interest on all new purchases. If you are juggling card debt, check how much you could save by consolidating balances with a lower-interest personal loan EMI.
Before putting large purchases on regular revolving credit, explore structured options like our no cost EMI calculator. If you only pay the minimum amount due, check our minimum due trap calculator, and optimize your repayments with a clear debt payoff plan.
In India, credit card interest rates are among the highest in the financial market, typically ranging between 36% and 42% annually. For perspective, a Home Loan might cost 9%, but a credit card costs 4 times that amount.
How Credit Card Interest is Calculated
Banks use the Average Daily Balance method. Interest is calculated on every single day you carry a balance. The mathematical logic used in our tool is:
- APR (Annual Percentage Rate): The total yearly interest rate charged.
- Days: The number of days from the transaction date to the billing date.
- Note: If you miss the payment, interest is often back-calculated from the date of the original purchase, not just the due date.
The "Minimum Amount Due" Trap
The "Minimum Amount Due" (usually 5% of the balance) is designed to keep you in debt for as long as possible. When you pay only the minimum:
- ❌ Interest Snowball: Most of your payment goes towards interest, and the principal barely moves.
- ❌ No Interest-Free Period: All new purchases start attracting interest from Day 1.
- ❌ Credit Score: High utilization can lower your CIBIL score.
Credit Card Minimum Amount Due (MAD) Trap vs Full Payment
| Outstanding Balance | Repayment Strategy | Time to Become Debt Free | Total Interest Paid (at 42% APR) | Total Money Paid |
|---|---|---|---|---|
| ₹1,00,000 | Paying Only 5% MAD | 14 Years & 8 Months | ₹1,84,300 (184% of debt) | ₹2,84,300 |
| ₹1,00,000 | Fixed ₹5,000 / month | 2 Years & 7 Months | ₹46,200 | ₹1,46,200 |
| ₹1,00,000 | 100% Full Payment on Due Date | Immediate (30-50 Days Grace) | ₹0 | ₹1,00,000 |