Paying ₹5,000 a month on a ₹1 lakh credit card balance at 24% APR clears it in 26 months and costs about ₹28,987 in interest. To be free in 24 months you would pay ₹5,288 a month instead.
What this calculates
Enter your card balance and APR, then either the monthly payment you can make or the number of months you want to be done in. This works out how long it takes and the interest it costs, or the payment you need. A year-by-year table shows what you pay, how much is interest and what is left.
The formula
Each month
interest = balance × APR ÷ 12; new balance = balance + interest − paymentPayment to clear it in n months
payment = B × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1)r is the monthly rate (APR ÷ 12 ÷ 100) and B the balance. A payment must be more than the first month's interest, B × r, or the balance never falls. The last payment is only what is left.
Worked example
Paying ₹2,001 a month would take 32 years, and ₹2,000 would never clear it.
When to use it, and the mistakes to avoid
Use it to plan how to get out of card debt, to see what an extra ₹1,000 a month saves, or to compare a payoff plan with a balance transfer or a personal loan.
The mistakes that cost the most:
- Paying the minimum. It can take decades and cost several times the balance.
- Adding new purchases. Every new charge restarts the clock.
- Forgetting how fast interest builds. A 36% APR is 3% every month.
- Ignoring fees. Late and annual fees add to what you owe.
- Not comparing alternatives. A lower-rate loan or transfer can cut the interest sharply.
FAQ
How long will it take to pay off my credit card?
Enter your balance, the APR and what you pay each month. Paying ₹5,000 a month on ₹1 lakh at 24% takes 26 months. The more you pay, the faster the balance falls, because less of each payment is eaten by interest.
Why does paying only the minimum take so long?
Interest is added to the balance every month, so a small payment barely touches the principal. On ₹1 lakh at 24%, interest is ₹2,000 a month; a payment of ₹2,001 takes 32 years to clear it, and a payment of ₹2,000 never does.
How do I find the payment that clears my card by a date?
Switch to the target mode and enter the number of months. The payment comes from the loan formula and is rounded up to a whole rupee. To clear ₹1 lakh at 24% in 24 months you need ₹5,288 a month.
How is credit card interest worked out?
The APR is divided by 12 and charged on the balance each month. A 24% APR is 2% a month. Real cards usually charge interest daily from the purchase date and add fees, so your statement can differ a little from this estimate.
Does this include new purchases or fees?
No. It assumes you stop using the card and that the APR stays the same. New purchases, late fees, annual fees and changes in the APR would each make the payoff longer or dearer.