Credit Card Payoff Calculator

Why credit card debt is so expensive

A credit card is the most convenient way to borrow — and one of the most expensive. Indian cards typically charge 30% to 45% per year on any balance you carry beyond the interest-free period. Because that interest compounds monthly, an unpaid balance can snowball far faster than most people expect. This calculator cuts through the confusion by answering the two questions that actually matter: how long until you are debt-free, and how much interest it will cost.

The maths is a rearranged loan-payoff formula: n = −ln(1 − r × B / P) / ln(1 + r), where B is your balance, r is the monthly rate (APR ÷ 12), and P is your fixed monthly payment. You don't need to compute it by hand — but understanding the drivers helps you make smarter choices.

The minimum-payment trap

Card issuers set a low minimum payment — usually around 5% of the balance — because it keeps you in debt, and in interest, for as long as possible. On a balance at 36% APR, the minimum barely exceeds the monthly interest charge, so the principal falls at a crawl. Paying only the minimum can stretch repayment across many years and cost you more in interest than the original balance.

The single most important lever is paying more than the minimum. Every rupee above the monthly interest goes straight against the principal, and because interest is charged on the outstanding balance, that removes all the future interest that balance would have generated.

When the payment is too low

There is a hard floor: if your monthly payment does not even cover the monthly interest, the balance grows every month and never clears. This calculator detects that case and, instead of a misleading number, shows you the minimum payment you would need to start making real progress.

Cheaper ways to clear the balance

If you are carrying a large balance at a punishing rate, two moves often save the most:

• Convert to an EMI: Most issuers let you convert a big balance into an instalment plan at 12–18%, roughly half the revolving rate. Weigh the processing fee against the interest saved.
• Balance transfer: Moving the balance to a card with a low promotional rate can cut interest sharply — as long as you clear it before the promotional window closes and the fee is modest.

Whatever route you choose, the fundamentals stay the same: stop adding new purchases, pay as much as you can each month, and attack the highest-APR balance first. Used with discipline, this calculator turns an intimidating balance into a concrete, finishable plan.