Credit card payoff calculator
Paying only the minimum due keeps a card current but can stretch a small balance over years. Enter your balance and your card’s monthly finance charge to compare paying the minimum with a fixed monthly amount, assuming you stop using the card for new spends.
Your statement shows it; the HDFC, SBI and Axis cards we cover charge 3.5–3.6% a month. That is 43.2% a year.
Usually 5%. Check your statement.
The fixed amount your card asks for when the percentage works out lower. Check your statement.
What this means
Paying ₹5,000 instead of the minimum saves about ₹1.91 lakh and clears the card 24 yr 4 mo sooner.
While any balance is carried, new purchases also attract interest from the day you make them. Converting the balance to an EMI or a personal loan at a lower rate usually costs far less. How finance charges work.
Worked example: ₹50,000 at 3.6% a month
What a fixed payment does
| Monthly payment | Time to clear | Finance charges + GST |
|---|---|---|
| ₹2,500 | 3 yr 10 mo | ₹63,856 |
| ₹5,000 | 1 yr 2 mo | ₹16,488 |
| ₹10,000 | 6 months | ₹7,432 |
₹2,500
- Time to clear
- 3 yr 10 mo
- Finance charges + GST
- ₹63,856
₹5,000
- Time to clear
- 1 yr 2 mo
- Finance charges + GST
- ₹16,488
₹10,000
- Time to clear
- 6 months
- Finance charges + GST
- ₹7,432
Why the minimum due is a trap
- The minimum shrinks as the balance shrinks, so the payment falls almost as fast as the debt.
- Interest is charged on the whole balance carried, and on new purchases from the day you make them, until the balance is zero.
- At 3.5–3.6% a month, card debt costs about 42–43% a year before GST, several times a personal loan.
Cheaper ways out
- Convert the balance to an EMI with your card issuer, usually at a far lower rate than the revolving charge.
- Take a personal loan to clear the card, then pay the loan down on a fixed schedule.
- Stop using the card until it is paid off, so new spends do not start costing interest immediately.
Frequently asked questions
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