Credit Card Payoff Calculator
Months to clear balance at a fixed payment.
Inputs
This calculator is for general information only and isn't financial advice. Rates, tax rules, and your actual eligibility depend on your specific situation — check with your bank or a qualified advisor before acting on it.
Formula
Each month: Interest = Balance × (APR / 12); Balance = Balance + Interest − Payment
Interest accrues monthly on the outstanding balance at APR ÷ 12. Your fixed payment first covers interest, then reduces principal. The loop runs until the balance drops below ₹0.01 or 600 months — whichever comes first.
Worked example
A ₹50,000 balance at 42% APR with ₹5,000 fixed monthly payments clears in about 13 months, costing roughly ₹12,633 in interest (₹62,633 total paid). Indian credit cards often quote 42% APR or higher — paying only the minimum would stretch this far longer.
Where this can give the wrong answer
- If monthly payment doesn't exceed the first month's interest charge, the balance grows forever and the calculator returns an error — this is the minimum-payment trap in numeric form.
- New purchases, annual fees, and late-payment penalties aren't added to the balance — model only the starting outstanding amount.
- The 600-month cap (50 years) prevents infinite loops; if you hit it, your payment is far too low for the APR.
FAQ
- Credit cards are unsecured revolving credit with no fixed tenure — issuers price in higher default risk. A 42% APR is common in India versus 12–18% on personal loans, which is why clearing the balance quickly saves disproportionate interest.