Credit Card Payoff Calculator
Credit cards advertise a monthly rate — "just 3.5%" — because the annual figure, 42%, would stop people cold. That is the highest rate almost anyone will ever pay on anything.
The minimum payment is engineered against you. It's set at roughly 5% of the balance, which barely covers the interest, so the debt shrinks at a crawl while the card keeps charging. Enter your real numbers below. Then raise the monthly payment and watch the "time to clear" collapse — the responsiveness is the point. On a card, small increases in payment produce huge reductions in cost.
How it works
- 01Interest is applied to the outstanding balance each month, then your payment is subtracted. Whatever survives carries into the next month and gets charged again.
- 02If your payment does not exceed the monthly interest, the balance never falls. The calculator tells you outright when that happens rather than silently producing nonsense.
- 03The comparison shows your current plan against a faster one, so the cost of taking longer is visible instead of theoretical.
Frequently asked
What actually happens if I only pay the minimum?+
₹1,00,000 at 42% with a 5% minimum takes well over a decade to clear and costs more in interest than the original balance. The minimum payment exists to keep the account performing, not to get you out of debt.
Is a balance transfer worth doing?+
Often yes. Moving to a 0% or low-rate promotional window redirects your entire payment at the principal. It only works if you clear the balance before the promotional period ends and you stop spending on the old card — otherwise you have refinanced the problem, not solved it.
Should I take a personal loan to clear my card?+
A personal loan at 12–16% against a card at 42% is straightforwardly better maths, and the fixed EMI gives you a real end date. The trap is treating the cleared card as available credit again. Convert the debt, then put the card away.
Avalanche or snowball?+
Avalanche — highest rate first — costs the least. Snowball — smallest balance first — is easier to stick with because you get visible wins early. The best method is the one you will still be following in six months.
Does carrying a balance improve my credit score?+
No. That is a persistent myth. Using your card and paying it in full each month builds a strong score. Carrying a balance just costs you interest and pushes up your utilisation ratio, which hurts the score.