Credit Card Interest Cost Calculator
See what carrying a credit card balance really costs: months to become debt-free, total interest, and the 18% GST charged on top — whether you pay the minimum due or a fixed amount each month.
Credit Card Interest Cost Calculator
Escape the revolving trap
- Always pay the full statement amount — the interest-free period only exists if you never revolve
- Carrying a balance kills the interest-free period on NEW purchases too — they accrue interest from day one
- Stuck with a big balance? Converting it to a card EMI plan can cut the rate from ~42% to ~15%
- Set the autopay to 'total amount due', not 'minimum due' — the default minimum setting is the trap
Credit card interest FAQ
How is credit card interest calculated in India?
Cards quote a monthly rate (2.5–3.75%, i.e. 30–45% APR). Once you carry a balance past the due date, interest accrues daily on the outstanding amount — and you lose the interest-free period on new purchases too. On top of that, 18% GST is charged on the interest amount itself.
What happens if I only pay the minimum due?
The minimum due (typically 5% of the balance) mostly covers interest, barely touching the principal. A ₹1 lakh balance at 42% APR paid via minimum due takes years to clear and costs more than half the principal again in interest and GST. This calculator shows your exact numbers.
Why does my balance grow even though I pay every month?
If your payment is less than the month's interest plus GST, the shortfall is added to the balance — the debt compounds against you and mathematically never gets repaid. The calculator flags this 'never pays off' situation in red.
Is GST really charged on credit card interest?
Yes — 18% GST applies to interest charges, late payment fees, and most card fees in India. On ₹10,000 of interest you pay an extra ₹1,800 of GST, so the true cost of revolving is about 1.18× the quoted interest.
What's the cheapest way out of credit card debt?
In order of cost: (1) convert the balance to an EMI plan on the same card at 13–18%, (2) take a personal loan at 10.5–14% and clear the card, (3) a balance transfer card with a low-interest intro window if you can repay within it. All three beat 36–45% revolving interest by a wide margin.
Does carrying a balance hurt my credit score?
Yes, through credit utilisation. Using more than 30% of your limit dents the score; above 70–80% it's a serious red flag even if you pay the minimum due on time. Clearing revolving debt is one of the fastest score-improvement actions you can take.