What is Credit Card Payoff?
The Credit Card Payoff Calculator shows how long it will take to pay off your credit card balance and how much interest you'll pay. Indian credit cards charge 24-42% APR (2-3.5% per month) on revolving balances — one of the highest interest rates on any financial product.
The trap: if you only pay the minimum amount due (typically 5% of balance or ₹200, whichever is higher), a ₹50,000 balance at 36% APR takes over 3 years to pay off, and you pay ₹35,000+ in interest — 70% of the original balance!
Credit card debt is the most expensive form of borrowing in India. Compare: home loan at 8.5%, personal loan at 12-16%, credit card at 36-42%. Always pay the full statement balance. If you can't, pay as much as possible above the minimum.
If you're stuck with credit card debt, consider: (1) balance transfer to a lower-rate card (some offer 0% for 3-6 months), (2) personal loan to consolidate (12-16% vs 36-42%), (3) negotiate with the bank for a lower rate or EMI conversion.
Formula
Months to pay off = -ln(1 − B×r/P) / ln(1+r)
Where: - B = Balance - r = Monthly interest rate (APR/12/100) - P = Monthly payment
Total Interest = (Monthly Payment × Months) − Balance
Example — ₹50,000 balance, 36% APR, ₹3,000/month: r = 36/12/100 = 0.03 (3% per month) Months = -ln(1 − 50000×0.03/3000) / ln(1.03) = -ln(0.5) / 0.02956 = 23.4 months Total paid = ₹3,000 × 24 = ₹72,000 Total interest = ₹22,000 (44% of original balance)
₹5,000/month → 12 months, ₹9,600 interest (saves ₹12,400!)
How to use this Credit Card Payoff Calculator?
1. Enter your credit card outstanding balance. 2. Enter the APR (check your card statement — typically 36-42% in India). 3. Enter the monthly payment you plan to make. 4. See months to payoff and total interest.
Experiment: try increasing your monthly payment by even ₹1,000-2,000 to see how dramatically it reduces time and interest.