What the estimate means
The result models one existing balance with no new transactions. It separates GST from the interest-bearing balance because RBI directions say issuers must not capitalise unpaid taxes, levies or charges for charging interest. Actual statements can use daily transaction-level calculations, so the issuer's statement remains the final amount due.
How to use the calculator
- Enter the outstanding balance you want to repay and stop adding new purchases.
- Copy the monthly finance-charge rate from your statement or current MITC.
- Enter an amount you can pay consistently each month.
- Compare the payoff time and finance cost, then test a higher payment if affordable.
About the minimum-payment illustration
Minimum Amount Due is not a universal percentage. It can include principal, finance charges, GST, EMIs, fees, over-limit amounts and earlier unpaid minimums. The comparison above is an educational scenario using the percentage you enter, plus estimated interest and GST. Use the exact amount on your statement for payment decisions.
Frequently asked questions
How does this credit card interest calculator work?
It estimates monthly finance charges on the unpaid interest-bearing balance, calculates GST separately, applies your planned payment and repeats the process until the balance is repaid. It assumes no new purchases or fees.
Why may my actual credit card interest be different?
Issuers can calculate finance charges using daily balances and transaction dates. New purchases, cash advances, fees, refunds, payment allocation, rounding and statement dates can all change the actual amount.
Does paying the minimum amount stop interest?
Usually no. Paying the minimum may keep the account from being treated as immediately overdue, but the unpaid balance can continue attracting finance charges under the issuer's terms.
Can a monthly payment be too low to repay the balance?
Yes. If the payment does not exceed the interest and applicable tax being added, the balance may not decline. The calculator flags this condition using the assumptions entered.