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Credit Card Interest Calculator

Calculate your credit card interest charges and plan your payments

%

No interest if paid within billing cycle (typically 45-51 days)

Payment Summary

13 Months to Pay Off

Total Payment: ₹12,068

Total Interest

₹2,068

Monthly Interest

₹159

Payment Breakup

Principal: 82.9% Interest: 17.1%

Understanding Credit Card Interest

Credit card interest is charged on the outstanding balance when you don't pay the full amount by the due date. Understanding how it works can help you manage your credit card debt better.

Key Concepts:

  • APR (Annual Percentage Rate): Yearly interest rate
  • Grace Period: Interest-free period for new purchases
  • Minimum Payment: Typically 2-5% of outstanding balance
  • Daily Interest: APR divided by 365 days
  • Compound Interest: Interest charged on previous interest

How to Avoid Interest:

  • Pay full balance within grace period
  • Make payments before due date
  • Keep credit utilization low
  • Consider balance transfer options
  • Set up automatic payments

Example Calculation:

For a balance of ₹50,000:

  • APR: 36%
  • Monthly Payment: ₹5,000
  • Time to Pay Off: 13 months
  • Total Interest: ₹13,500
  • Total Payment: ₹63,500

Important Note:

Making only minimum payments can result in significant interest charges and longer repayment periods. Always try to pay more than the minimum amount to reduce interest costs.