What is a Credit Card Payoff Calculator?

This Credit Card Payoff Calculator helps you understand how long it will take to pay off your credit card debt and how much interest you’ll end up paying — based on your current balance, interest rate, and monthly payment.

Most people don’t realize that making just the minimum payment can trap them in debt for years. This calculator reveals the truth and shows how extra payments can reduce your burden.

How to Use:

1. Enter your outstanding credit card balance (e.g. ₹75,000).

2. Add your credit card interest rate (e.g. 36% annually).

3. Input the amount you can pay every month.

4. Click Calculate to view:

   • Time required to pay off the full balance

   • Total interest paid

   • A visual chart showing debt reduction over time

Why This is Critical

Credit card debt is one of the costliest forms of debt in India — with interest rates between 30–45% per annum. Without a proper repayment plan, you could pay more in interest than the actual debt.

                      Tip: Always pay more than the minimum. Even ₹1,000 extra/month makes a huge difference.

Example:

• Balance: ₹75,000, Interest Rate: 36%, Monthly Payment: ₹3,000

Result:

• Payoff Time: 3.5 years and Total Interest: ₹51,000+

FAQs

Q1: Why does the debt take so long to clear?
A: Because interest keeps compounding monthly. If your payment is only slightly more than interest, very little goes toward principal.

Q2: Can this calculator help avoid the minimum payment trap?
A: Yes. It shows how dangerous it is to pay just the minimum and motivates you to increase payments.

Q3: What’s a good monthly payment strategy?
A: Aim to pay 3–5x the minimum amount if possible. Or convert to EMI with lower interest.