Credit Card Interest Calculator

Q: What is the interest rate on credit cards in India?

Most cards charge a finance charge of roughly 3–3.75% a month on unpaid balances, which is about 36–45% a year. Your card's Key Fact Statement gives the exact rate.

Q: Is GST charged on credit card interest?

Yes. 18% GST is added to the interest and to most fees, such as late payment charges.

Q: What happens if I pay only the minimum amount due?

You avoid a late payment fee, but interest is charged on the rest of the balance, and usually on new purchases from the day you make them.

Q: Is there a legal cap on credit card interest in India?

No. In December 2024 the Supreme Court set aside the 30% a year cap that the National Consumer Disputes Redressal Commission had imposed, so banks set their own rates.

Q: How can I reduce credit card interest?

Pay the full amount due each month. If you cannot, convert the balance to an EMI or take a cheaper personal loan to clear it, and stop using the card until it is paid off.

See what carrying a credit card balance costs at your card’s monthly finance charge plus GST, and how many months it takes to clear at the amount you can pay each month.

Outstanding balance (₹)

Finance charge (% a month)

On your card's Key Fact Statement

You pay each month (₹)

Interest + GST until cleared

₹15,832

Months to clear14

Interest₹13,417

GST on interest (18%)₹2,415

Rate as a yearly figure42.0% (51.1% compounded)

Paying ₹5,000 a month clears ₹50,000 in 14 months and costs ₹15,832 in interest and GST.

Assumes no new spending on the card. Once you carry a balance, banks usually charge interest on new purchases from the day you make them, so the interest-free period is lost until the balance is cleared.

How credit card interest works in India

If you pay the total amount due by the due date, you pay no interest. If you pay less, even just the minimum amount due, the bank charges a finance charge on the unpaid balance, quoted as a monthly rate (often around 3.5% a month, about 42% a year). 18% GST is added on top of that interest.

How the cost is calculated

Each month: interest = balance × monthly rate; GST = interest × 18%; new balance = balance + interest + GST − payment

Worked example

₹50,000 balance at 3.5% a month, paying ₹5,000 a month and not using the card:

Cleared in 14 months
Interest about ₹13,417 plus GST about ₹2,415: ₹15,832 in total
3.5% a month works out to 42% a year, or about 51% once it compounds

Why paying only the minimum due is expensive

The minimum amount due is usually a small share of the balance, often around 5%. Paying only that avoids a late fee but not interest, and while a balance is unpaid most banks also charge interest on new purchases from the day you make them, so the interest-free period is lost until you clear the card.

Cheaper ways to clear a card balance

Convert to EMI. Most banks offer EMI conversion at a lower rate, sometimes with a processing fee.
Personal loan. A personal loan at 11–16% costs far less than a card at about 42%. Compare offers first.
Balance transfer to another card at a low introductory rate, if the fee is small.

When to use a different calculator

Thinking of a personal loan to clear the card? Use the Personal Loan EMI Calculator.
Comparing EMI conversion with a loan? Use the Loan Comparison Calculator, or read Personal Loan vs Credit Card EMI.