Credit Card Payoff Calculator
How long to clear a card balance: fixed payment vs minimum due, with 18% GST
| Month | Opening balance | Interest | GST | Payment | Closing balance |
|---|---|---|---|---|---|
| 1 | ā¹1,00,000.00 | ā¹3,600.00 | ā¹648.00 | ā¹10,000.00 | ā¹94,248.00 |
| 2 | ā¹94,248.00 | ā¹3,392.93 | ā¹610.73 | ā¹10,000.00 | ā¹88,251.66 |
| 3 | ā¹88,251.66 | ā¹3,177.06 | ā¹571.87 | ā¹10,000.00 | ā¹82,000.59 |
| 4 | ā¹82,000.59 | ā¹2,952.02 | ā¹531.36 | ā¹10,000.00 | ā¹75,483.97 |
| 5 | ā¹75,483.97 | ā¹2,717.42 | ā¹489.14 | ā¹10,000.00 | ā¹68,690.53 |
| 6 | ā¹68,690.53 | ā¹2,472.86 | ā¹445.11 | ā¹10,000.00 | ā¹61,608.50 |
| 7 | ā¹61,608.50 | ā¹2,217.91 | ā¹399.22 | ā¹10,000.00 | ā¹54,225.63 |
| 8 | ā¹54,225.63 | ā¹1,952.12 | ā¹351.38 | ā¹10,000.00 | ā¹46,529.14 |
| 9 | ā¹46,529.14 | ā¹1,675.05 | ā¹301.51 | ā¹10,000.00 | ā¹38,505.69 |
| 10 | ā¹38,505.69 | ā¹1,386.21 | ā¹249.52 | ā¹10,000.00 | ā¹30,141.42 |
| 11 | ā¹30,141.42 | ā¹1,085.09 | ā¹195.32 | ā¹10,000.00 | ā¹21,421.82 |
| 12 | ā¹21,421.82 | ā¹771.19 | ā¹138.81 | ā¹10,000.00 | ā¹12,331.82 |
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Results are estimates, not financial advice. Rates, charges and rules change, so confirm with your bank, post office or a financial adviser before you decide. Terms of use
How to Use
- Enter the outstanding balance on your card and the monthly interest rate from your card's terms (often 3ā3.75% a month).
- Leave 18% GST on interest switched on, as card issuers charge it on finance charges.
- Enter the fixed amount you can pay every month.
- Enter your card's minimum due rule: the percentage of the statement and the smallest amount it asks for.
- See how soon you are debt-free, what paying only the minimum would cost, the balance chart and the month-wise payoff table.
Why credit card debt grows so fast
If you pay your full credit card bill by the due date, you pay no interest. The moment you carry even part of it forward, the card charges finance charges, usually about 3% to 3.75% a month on Indian cards, which is 36% to 45% a year. Card issuers also charge 18% GST on that interest and on fees, so 3.6% a month really costs about 4.25% a month. Few other loans in India cost this much, which is why clearing card debt quickly matters more than almost any other money goal.
How this calculator works
GST = interest Ć 18%
Statement = balance + interest + GST
New balance = statement ā payment
It repeats this every month until the balance is zero, once with your fixed payment and once paying only the minimum due (the higher of the percentage you enter and the minimum ā¹ amount). Every payment is assumed to cover at least that month's interest and GST: RBI's 2022 directions on credit cards say the minimum due must not lead to the balance growing.
Simplifications. It assumes you make no new purchases and pay on time. Real cards work out interest daily from each transaction date and, while a balance is carried, usually charge interest on new purchases from the day you buy. Late fees (plus GST) apply if you miss even the minimum due. So your actual cost is likely to be somewhat higher than shown, never lower.
Worked example: the minimum due trap
You owe ā¹1,00,000 at 3.6% a month, with 18% GST on interest.
- Month 1: interest ā¹3,600 + GST ā¹648 = ā¹4,248. The statement is ā¹1,04,248.
- Paying ā¹10,000 a month, the balance falls to ā¹94,248 after the first month and is cleared in 14 months, with about ā¹32,977 paid in interest and GST.
- Paying only a 5% minimum due (ā¹5,212 in month 1, then less as the balance falls, never below ā¹200), it takes about 31 years 6 months and costs about ā¹4.28 lakh in interest and GST, over four times the original debt.
The minimum due shrinks along with the balance, so most of each payment goes to interest and very little to the principal. That is the trap: the card stays "current" and your credit report shows no default, yet the debt barely moves.
Typical charges on Indian credit cards
| Charge | Typical level | GST |
|---|---|---|
| Finance charges (interest) | About 3ā3.75% a month | 18% |
| Late payment fee | Slab-wise, by amount due | 18% |
| Cash withdrawal fee | Usually a % of the amount, with a minimum | 18% |
Exact figures differ by card. Check your card's Most Important Terms and Conditions (MITC) or the latest statement.
Ways to get out faster
- Pay as much as you can above the minimum, and stop using the card until the balance is cleared.
- Convert to EMI or take a cheaper loan. Card EMI conversion, a personal loan or a loan against an FD usually costs far less than 40%+ a year. Compare the total cost, including processing fees.
- Balance transfer to another card at a lower rate can help, but read the fee and the rate after the offer period.
- Always pay at least the minimum on time. A missed payment adds a late fee and can hurt your credit score.