Credit Card Interest Cost Calculator
Indian card APRs are 36-48% annually. This is what carrying a balance really costs — and what your monthly payment could become if invested instead.
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Your result
At 3.5%/month, you'll take 13 months (1.1 years) to clear ₹50,000 — paying ₹12,633 in interest. That's the cost of borrowing money you've already spent.
- Total interest paid
- ₹12,633
- Total amount paid
- ₹65,000
- Time to clear
- 13 months (1.1 years)
- Effective APR
- 42%
If you'd invested this monthly amount at 12% instead
₹1.36 lakh
Same ₹5,000/month, over the same time, in an index fund.
How Indian credit-card interest actually works
Banks quote it as "3.5% per month" because the annual number — typically 42% APR — would scare anyone. But the compounding is monthly, so the effective annual rate is closer to 51%. There is no other consumer financial product in India this expensive. Personal loans, business loans, even loan-shark gold loans charge less than half this.
What to do if you're in this situation right now
- Stop using the card. Cut it up if needed. New spends keep the interest clock running.
- Apply for a personal loan. Even at 14-16%, it's 1/3 the cost of card revolving. Use it to pay off the card in one shot.
- Or use a balance transfer. Some cards offer 0-1% transfer rates for 6-12 months. Transfer the balance, pay it down hard, and don't restart the cycle.
- Negotiate with the bank. If you've been a long-time customer, most Indian banks will waive 1-2 months of interest or offer an EMI conversion at 14-18%. Worth a phone call.