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Credit card interest calculator

See how long it takes to clear a credit card bill, and what it costs in interest and GST, if you pay a fixed amount each month or only the minimum due.

Assumes no new spending on the card. GST of 18% is added to interest each month.

How credit card interest works in India

  • Pay the full total amount due by the due date and you pay no interest. Purchases get an interest-free period of about 20 to 50 days.
  • Pay less than the total and most banks charge interest on what is left, often counted from the date of each purchase. New purchases also lose their interest-free period until the balance is cleared.
  • Interest is usually 3% to 3.75% a month, which is 36% to 45% a year. GST of 18% is charged on top of interest and fees.
  • Cash withdrawn on a credit card is charged interest from the day you take it out, plus a cash advance fee.

Using a credit card well

  • Pay the total amount due every month, not just the minimum due. Setting up auto-pay for the full amount makes this automatic.
  • Never miss the minimum due. Under RBI rules, banks charge a late fee and report you to credit bureaus once a payment is more than 3 days past the due date.
  • Keep what you owe under about 30% of your credit limit. Using more than that can lower your credit score.
  • Avoid cash withdrawals on a credit card.
  • If a large balance has built up, ask your bank about converting it into EMIs, or compare it with a personal loan. Both usually cost far less than the 36% to 45% a year of revolving credit. Check the processing fee before you agree.

Frequently asked questions

What happens if I pay only the minimum due?

You avoid the late fee and a bad credit report, but interest and GST keep adding up on the rest. Because the minimum due shrinks as your balance shrinks, a ₹50,000 bill can take many years to clear. Enter your figures above to see your own case.

Is a credit card EMI cheaper than paying the minimum due?

Usually yes. Card EMI plans and personal loans typically charge much less than revolving credit, but add a processing fee and GST. Compare the total cost before converting.

Does a late payment affect my CIBIL score?

Yes. Banks report payments that are more than 3 days overdue to credit bureaus, and that history stays on your report.

Sources

Built and checked by Satya Saladi · Last updated 15 Oct 2026