Credit Card Payoff Calculator
Credit card interest rates in India are among the highest consumer borrowing rates (36% to 45% p.a.). Calculate your payoff timeline and see how increasing your monthly payment saves thousands in interest.
How it works
Each month, interest is calculated on your revolving outstanding balance. Your fixed payment first covers that month's interest, and the remainder reduces the principal. As principal drops, monthly interest decreases, accelerating repayment.
Formula
N = -(ln(1 - (B × r / P)) / ln(1 + r))
Calculates the exact number of amortization cycles required to bring the revolving credit balance to zero at the stated monthly interest rate.
| Symbol | Variable | Unit | Description |
|---|---|---|---|
| N | Number of months to payoff | months | |
| B | Current credit card balance | ₹ | |
| r | Monthly interest rate (APR / 12) | decimal | |
| P | Monthly payment amount | ₹ |
Worked example
₹50,000 balance at 36% APR paying ₹3,000 monthly
- Balance:
- ₹50,000
- APR:
- 36% (3% per month)
- Payment:
- ₹3,000
First month interest is ₹1,500, leaving ₹1,500 for principal. In 24 months, the card is completely paid off. Total interest paid is ₹20,132 (total paid ₹70,132). Paying ₹5,000/mo instead cuts payoff to 12 months and saves over ₹11,000 in interest!
Limitations
Does not include 18% GST charged on credit card interest in India, or late payment penalties.
Frequently asked questions
Why should I avoid paying only the minimum amount due (MAD)?
The minimum amount due is typically only 5% of your outstanding balance or just covers the monthly interest and taxes. Paying only the minimum can trap you in debt for 10 to 20+ years while paying multiples of your original purchases in interest.
How can I pay off my credit card faster?
You can use either the Debt Avalanche method (pay highest interest debt first) or Debt Snowball method (pay smallest balance first). You can also consider taking a low-interest personal loan or balance transfer to consolidate high-interest credit card debt.
Does credit card debt impact my CIBIL score?
Yes, maintaining high credit card balances results in a high Credit Utilization Ratio (CUR). Keeping your card utilization below 30% of your credit limit helps boost and maintain a strong CIBIL score.
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Last reviewed: 2026-08-22.