Debt payoff utility
Credit Card Interest Calculator
Estimate payoff time and interest cost from an outstanding balance, annual percentage rate, and fixed monthly payment.
Estimate credit card payoff
Simplified formula
Monthly rate = APR ÷ 12. Monthly interest = opening balance × monthly rate. The fixed payment is then subtracted and the process repeats.
Important issuer differences
Statements can use daily balances, transaction dates, multiple APRs, fees, GST, grace-period rules, and payment allocation. Compare this illustration with your card’s MITC and statement.
Frequently asked questions
How is credit card interest estimated?
The simplified model divides APR by 12, applies that monthly rate to the outstanding balance, and subtracts the fixed payment each month.
Why can minimum payments take so long?
When a payment is only slightly above the monthly interest and charges, very little reduces principal, so repayment can stretch for many months or years.
Will this match my card statement?
Not necessarily. Issuers can use daily balances, transaction dates, multiple APRs, taxes, fees, grace-period rules, and specific payment allocation methods.
What this calculator estimates
This calculator models a revolving balance using the APR and fixed monthly payment you enter. Paying the statement balance in full may avoid purchase interest when the issuer’s interest-free-period conditions are met.
Formula and method
Estimated monthly rate = APR ÷ 12. Each cycle: interest = opening balance × monthly rate; closing balance = opening balance + interest − payment.
Worked examples
- A ₹1,00,000 balance at 36% APR with a ₹10,000 monthly payment takes about 13 months to repay in this simplified model.
- At the same APR, a payment close to the monthly interest can stretch repayment dramatically.
Methodology and assumptions
The engine applies one-twelfth of the entered APR to the outstanding balance once per simulated month, then subtracts the fixed payment. It stops when the balance reaches zero or after 1,200 months. It excludes transaction-level daily balances, new purchases, cash advances, GST on finance charges, late fees, annual fees, payment allocation rules, grace-period loss, and issuer rounding.
Authoritative sources
- Credit Card and Debit Card – Issuance and Conduct Directions, 2022Reserve Bank of India
Sources checked September 1, 2026. Regulations and guidance can change; use the linked authority for the current position.
Related tools
Methodology, sources, and limitations reviewed: September 1, 2026. The calculation engine and displayed assumptions are reviewed together; report a mismatch through the corrections policy.