Credit Card Interest & Minimum Due Calculator
Paying only the "minimum amount due" keeps your account in good standing, but the rest of the balance keeps collecting interest of up to 3.75% a month, plus GST. See how long it really takes to clear your balance and how much it costs.
How credit card interest works in India
If you don't pay the full statement balance, you lose the interest-free period. Interest of roughly 3–3.75% a month (up to about 45% a year) is then charged on the unpaid balance and on new purchases from the date of each transaction, plus 18% GST on the interest.
The minimum due is usually 5% of the balance (with a small floor, such as ₹200). Paying only this amount can take years to clear even a moderate balance.
Tips to reduce interest
- Always pay the total amount due, or as much above the minimum as you can.
- Convert a large balance to EMI, which usually has a lower rate than revolving credit.
- Consider a balance transfer to a card with a lower interest rate.
FAQs
What happens if I only pay the minimum due?
You avoid late fees, but interest is charged on the remaining balance and new purchases lose their interest-free period until you clear the full balance.
Is interest charged on the full amount?
Interest is charged on the unpaid balance from each transaction date, which is why paying even slightly less than the full amount can be expensive.