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Credit Card Debt

₹1K₹20L
%

Indian cards: ~36–48% p.a.

12%60%
₹100₹2L
Credit-card interest compounds monthly at a high rate — paying more than the minimum saves a lot.

Time to Pay Off

2 yr 11 mo

Total interest: ₹74,989

Total Interest

₹74,989

Total Paid

₹1,74,989

💡 Paying only the 5% minimum instead would take 20 yr 8 mo and cost ₹2,27,000 in interest.

How It Works

Credit card debt is among the most expensive borrowing in India, with APRs typically 36-48% per year, compounded monthly. Each month, interest is added to your balance (monthly rate = APR ÷ 12) and your payment is subtracted. If your payment is larger than the interest, the balance falls and eventually clears; if it is smaller, the balance actually grows — you can never pay it off. The "minimum payment" trap is real: minimums are usually just 5% of the balance (with a small floor), so most of your payment goes to interest and the debt lingers for years, costing multiples of the original amount. This calculator shows how many months a fixed monthly payment takes to clear the debt and the total interest, and contrasts it with the minimum-payment scenario so you can see the enormous saving from paying more than the minimum. The single best move with high-interest card debt is to pay as much as you can, as fast as you can.

Formula

Each month: balance = balance + (balance × APR/12) − payment. If the payment ≤ monthly interest, the balance never reduces.

Frequently Asked Questions

Why does paying only the minimum keep me in debt?

The minimum (usually ~5% of the balance) barely exceeds the monthly interest at 36-48% APR. Most of it goes to interest, so the principal shrinks very slowly — stretching a payoff to many years and costing far more in total interest.

What happens if my payment is less than the interest?

The balance grows every month — you can never clear the debt. Your monthly payment must exceed the monthly interest (balance × APR ÷ 12) for the balance to start falling.

How high is credit card interest in India?

Typically 3-4% per month, which is roughly 36-48% per year — far higher than home loans (~8.5%) or personal loans (~11-16%). This makes carrying a card balance one of the most expensive forms of debt.

How can I pay off card debt faster?

Pay well above the minimum, stop new spending on the card, and consider converting the balance to a lower-rate personal loan or a balance-transfer offer. The calculator shows how a higher fixed payment cuts both the time and total interest.

Does interest compound on credit cards?

Yes — unpaid interest is added to the balance and itself accrues interest the next month. This monthly compounding at a high rate is why card debt snowballs so quickly.