Credit Card Payoff Calculator
How long to clear your card — and what paying only the minimum really costs
Reviewed by the PaisaTools Editorial Team · Last reviewed September 2026
How to use: Enter your outstanding balance, the card's yearly rate and what you can pay each month — you'll see the time to clear it, the interest, and how the minimum-due path compares.
Example₹1,00,000 at 42%, paying ₹5,000/month → clears in ~3 years; paying only the minimum → 20+ years and over ₹2 lakh interest
Per year. Indian cards typically charge 36–48% a year (about 3–4% per month).
Your plan
2y 11m
to clear it, paying ₹5,000 a month
Interest you'll pay
₹74,989
Total paid
₹1,74,989
If you pay only the minimum
Paying just the ~5% minimum due, this balance takes 20y 8m to clear and costs ₹2.27L in interest — often more than the amount you borrowed.
Your plan saves about ₹1.52L in interest and clears it 17y 9m sooner.
A monthly reducing-balance estimate. Real cards add GST on interest, late fees and finance charges on new spends — treat this as a planning guide. The minimum-due figure uses a typical ~5% rule.
A credit card is the most expensive everyday borrowing most people ever do — roughly 3–4% a month, 36–48% a year. The danger isn't the rate on its own; it's the “minimum amount due” printed on every statement. Pay only that (about 5% of the balance) and the bank is delighted: most of it clears the interest, barely any touches the principal, and a modest balance can sit on your card for over a decade.
This calculator makes the trap visible. Enter your outstanding balance, the card's rate and what you can pay each month, and it shows how long you'll actually take to clear it and the total interest — right next to the minimum-only path, so you can see exactly what paying more buys you.
Two rules follow from the maths: pay well above one month's interest (or the balance never shrinks), and stop putting new spends on the card until it's clear. If the rate is 40%+, also check whether a personal loan or an EMI conversion at a lower rate would cost far less overall.
Want it in a spreadsheet? Download the free Credit card interest calculator (Excel): month by month with 18% GST on the interest, your plan next to minimum-only. Live formulas, no macros, free to share with credit (CC BY 4.0). How the sheet works.
A monthly reducing-balance calculation: interest = balance × (APR ÷ 12), added each month before your payment is applied. Indian credit cards commonly charge 3–4% per month (about 36–48% annually), and the minimum amount due is typically around 5% of the outstanding, subject to a floor. This tool estimates interest only; actual statements also levy 18% GST on the interest, late-payment fees and finance charges on fresh spends, so real costs run higher. It's an educational planning guide, not financial advice — check your card's exact terms.
- Assumes a fixed APR and no new spending.
- Annual fees, cash-advance rates and late penalties aren't included.
- Why does paying the minimum keep me in debt?
- The minimum amount due is usually about 5% of your outstanding, and most of that first goes to interest. Indian cards charge roughly 3–4% a month (36–48% a year), so paying only the minimum can stretch a balance over 15–20 years and cost more in interest than you originally borrowed. This calculator shows both your plan and the minimum-only path side by side.
- How is credit card interest calculated?
- It's charged monthly on your reducing balance. Each month, interest is added to what you owe, your payment is applied, and interest is charged again on whatever remains. Because the rate is high and it compounds monthly, small extra payments shorten the payoff dramatically.
- What monthly payment will actually clear my card?
- Any amount above one month's interest reduces the balance; anything at or below it means the debt never shrinks. Enter different monthly amounts to find the point where the payoff time and interest drop to something reasonable — even a few hundred rupees more each month can save years.
- Does this include GST, late fees and annual charges?
- No — it's a clean reducing-balance estimate of interest on your current balance. Real statements also add 18% GST on the interest, late-payment fees, and finance charges on any new spends. Treat the result as a planning guide, and stop using the card for new purchases while you clear it.
- Is it worth converting the balance to an EMI or a personal loan?
- Often yes. A card at 40%+ is one of the most expensive forms of borrowing. A personal loan or a balance-transfer/EMI conversion at a much lower rate can cut the interest sharply — compare the total interest here against the loan's total cost before deciding.