Credit Card Interest Calculator
Key takeaways
- Paying ₹5,000.00 a month clears the ₹1.00 L balance in 31 months — with ₹54,995 of interest on top, 54.99% of the original balance.
- Of the first month’s ₹5,000.00, ₹3,000.00 goes to interest and only ₹2,000.00 comes off the balance.
- At ₹7,500.00 a month it clears in 18 months with ₹29,635 of interest.
- Card issuers also charge 18% GST on interest — at least ₹9,899 on this ₹54,995, which the figures above leave out.
Month-by-month balance
| Month | Interest charged | Balance cleared | Balance |
|---|---|---|---|
| 1 | ₹3,000 | ₹2,000 | ₹98,000 |
| 2 | ₹2,940 | ₹2,060 | ₹95,940 |
| 3 | ₹2,878 | ₹2,122 | ₹93,818 |
| 4 | ₹2,815 | ₹2,185 | ₹91,633 |
| 5 | ₹2,749 | ₹2,251 | ₹89,382 |
| 6 | ₹2,681 | ₹2,319 | ₹87,063 |
About the Credit Card Interest Calculator
When a credit card bill is not paid in full, the unpaid — "revolving" — balance starts accruing interest immediately, usually at a rate quoted per month rather than per year and typically in the 2–4% a month range. Unlike an EMI there is no fixed schedule that guarantees the debt is ever cleared.
This calculator simulates what actually happens month by month when a fixed rupee amount is paid against that balance: interest is added to the balance first, then the payment is subtracted, and the loop repeats until the balance reaches zero. "Months to clear" is how many months that takes; the totals are the running sums across them.
If the fixed payment does not cover even one month's interest on the current balance, the balance can never shrink — it grows, month after month, however long the payments continue. All three outputs show "—" in that case, because there genuinely is no month at which the balance reaches zero, and the schedule switches to showing the first 36 months so the rise is visible.
Frequently asked questions
How is credit card interest calculated?
On the outstanding balance, at the monthly rate on your statement, month after month. This calculator adds interest to the balance first and then applies the payment: balance = (balance + balance × rate) − payment, repeated until it reaches zero. Real statements also apply interest from the transaction date on new purchases once a balance revolves, which is outside this model.
What is the "minimum payment trap"?
A minimum due is typically about 5% of the outstanding balance, and on a balance at 3% a month, most of that goes to interest. Paying only the minimum stretches repayment over years and can cost more in interest than the original purchases. Enter a minimum-sized figure here and the calculator shows the month count that produces — or "—", if that payment cannot cover even the first month's interest.
Why do all three figures show "—"?
Because the fixed payment entered does not exceed the first month's interest, so the balance rises rather than falls and there is no month at which it clears. It is checked once, at the starting balance, since a balance that is not shrinking only grows and the shortfall only widens from there.
Is GST charged on credit card interest?
Yes — 18% GST applies to the interest and to any late-payment or other fees on a card. This calculator computes the interest itself; the GST on it is charged on top, so the real statement figure runs above what is shown here.
Does the interest-free period still apply once a balance revolves?
Generally no. Most issuers withdraw the interest-free grace period on new purchases once a balance is carried forward, and charge interest on them from the transaction date until the full outstanding amount is cleared. That is why a revolving balance grows faster than a simple rate-on-balance calculation suggests.
Disclaimer: This calculator is for information and education only. It is not investment advice and not a recommendation, and it is not a loan offer. The lender decides the actual interest rate, EMI, fees and eligibility, and whether insurance cover is required, and a floating rate can change during the loan. Charges you did not enter are not included. The card issuer sets the interest and the fees, GST applies to them at the rate set by law, and the card statement is the authority. Every figure is computed solely by applying the formula and assumptions stated on this page to the inputs you entered.