Credit Card Payoff Calculator
Credit card interest rates in India range from 36–48% p.a. — making them the most expensive form of debt. This calculator shows exactly how long it will take to pay off your balance, how much total interest you'll pay, and how much you save by paying more than the minimum.
Frequently Asked Questions
What interest rate do Indian credit cards charge?+
Most Indian credit cards charge 2.5–4% per month = 30–48% per annum. HDFC, ICICI, SBI, and Axis Bank typically charge 3.5–3.75%/month (42–45% p.a.). This is far higher than personal loans (10–18%) or home loans (8–9%).
What happens if I only pay the minimum amount?+
Paying only the minimum (usually 2–5% of the outstanding or ₹200, whichever is higher) barely covers the monthly interest. On a ₹50,000 balance at 40% p.a., a minimum payment of ₹1,000 means you're paying ₹1,667 in interest that month — your balance actually increases. It can take 10+ years to clear.
Should I take a personal loan to pay off credit card debt?+
Usually yes — if a personal loan is available at 12–18% p.a. vs a credit card at 40%+ p.a., the arbitrage is significant. For ₹1L at 40% p.a., you pay ₹40,000/year in interest; at 15% p.a., you pay ₹15,000 — saving ₹25,000 annually. Just ensure you close the credit card or reduce the limit to prevent re-accumulation.
What is the avalanche vs snowball method for debt payoff?+
Avalanche: pay minimum on all debts, put all extra money on the highest-interest debt first — mathematically optimal, saves the most interest. Snowball: pay off the smallest balance first regardless of rate — psychologically motivating, builds momentum. For credit card debt at 40%+ rates, the avalanche method saves significantly more.