Pathak AssociatesPathak Associates

Credit Card Interest Calculator

Calculate interest charged on credit card outstanding balance. Compare paying full vs minimum.

Unpaid balance on credit card

Typical: 24-42% p.a. for credit cards

Typically 2-5% of outstanding balance

Days for which interest will be charged

High Interest Alert

Credit card interest (24-42% p.a.) is much higher than personal loans (10-15%) or home loans (6-9%). Always pay full balance.

💡 Tip: Paying only minimum payment will increase your debt significantly over time due to compound interest.

Disclaimer

Interest calculation is approximate. Actual interest may vary based on payment cycle and bank policies.

Credit Card Interest Impact

Understand the true cost of carrying credit card balance and benefit of paying full amount.

Interest Charged

Daily interest calculated on outstanding balance

Minimum Payment

Minimum amount you need to pay to stay compliant

Cost of Minimum

Total interest if you only pay minimum for 12 months

Interest Savings

Interest saved by paying full balance

Pro Tips

  • Credit card APR: 24-42% p.a. - highest among all loans
  • Interest calculated daily on outstanding balance
  • Paying full balance avoids all interest charges
  • Minimum payment: Usually 2-5% of balance, but only covers interest

Important Notes

• If you pay minimum: Balance grows due to interest > principal reduction

• Debt trap: At 5% minimum payment, it takes 40+ months to clear balance

• Grace period: Interest-free period (typically 45-50 days) if full payment made

• Compare: Credit card (36% APR) vs Personal loan (12% APR) vs Home loan (8% APR)

Related Calculators

Explore other calculators that might help with your financial planning