Credit Card Interest Calculator
If you pay only the minimum amount due or part of your credit card bill, the bank charges a finance charge on the unpaid balance — often around 3-4% a month, which is over 40% a year. This calculator shows what carrying a balance actually costs.
- Interest charged
- ₹1,849
- Interest + 18% GST
- ₹2,182
- Equivalent annual rate
- 45.0% p.a.
How to use this calculator
- Enter the unpaid balance you expect to carry.
- Enter your card's monthly finance charge from the card's MITC or statement.
- Enter how many days the balance will stay unpaid.
- See the interest, the interest plus 18% GST, and the equivalent annual rate.
How credit card interest is calculated
Interest = Balance × (monthly rate × 12 ÷ 365) × days
Card issuers convert the monthly finance charge into a daily rate and apply it to your outstanding balance for each day it is unpaid. GST at 18% is added to the interest.
The calculator uses a simple daily calculation on a constant balance. Real statements can be higher because many issuers charge interest from the date of each purchase once you lose the interest-free period by not paying the full bill.
Interest on a ₹50,000 unpaid balance at an illustrative 3.75% per month
| Days carried | Interest | Interest + 18% GST |
|---|---|---|
| 15 days | ₹925 | ₹1,091 |
| 30 days | ₹1,849 | ₹2,182 |
| 45 days | ₹2,774 | ₹3,273 |
| 60 days | ₹3,699 | ₹4,364 |
| 90 days | ₹5,548 | ₹6,547 |
Paying only the minimum due is expensive
Paying the minimum amount due keeps your account regular and avoids a late fee, but you lose the interest-free period and pay finance charges on the full balance. If you cannot clear the bill, converting a large purchase into an EMI or moving the balance to a cheaper personal loan usually costs far less.
Frequently asked questions
What is a typical credit card interest rate in India?
Many cards charge a finance charge of roughly 3-4% a month, which works out to about 36-48% a year. Your card's exact rate is in its Most Important Terms and Conditions (MITC).
Is GST charged on credit card interest?
Yes. GST at 18% is charged on finance charges, late fees and most other credit card fees.
How do I avoid credit card interest?
Pay the total amount due in full by the due date every month. You then pay no interest on purchases, thanks to the interest-free period. Cash withdrawals attract interest from the day of withdrawal.