Credit Card Interest
Calculator India 2026

Indian banks use the daily balance method. Daily Interest = Outstanding Balance x (Annual Rate / 365). At 3.49% monthly (41.88% APR), the daily rate is 0.1147%. On Rs 1,00,000 balance, that is Rs 114.7 per day. Interest starts from each transaction date if you carry any balance past the due date. Then 18% GST is added on top, making the effective APR approximately 49.4%.

The advertised rate is 3.49% monthly (41.88% APR). But 18% GST applies on all finance charges. Effective rate = 3.49% x 1.18 = 4.12% monthly, or approximately 49.4% per annum. On Rs 1 lakh revolving balance, you pay Rs 4,118 per month — not Rs 3,490. This GST-adjusted number is almost never disclosed by banks. Our calculator includes GST by default so you see the real cost.

At 3.49% monthly interest + 18% GST, paying only 5% minimum due on Rs 1,00,000 takes approximately 63-88 months (5-7 years) depending on the bank. Total amount paid: Rs 2,50,000-2,70,000. You pay 2.5-2.7x the original amount. In the first year, over 70% of every minimum payment goes to interest — only 30% reduces your actual debt.

Dramatically. On Rs 1,00,000 at 3.49% monthly: paying 5% minimum due costs Rs 1,70,000 in interest over 88 months. Paying Rs 10,000 fixed monthly costs Rs 32,000 in interest over 12 months. Paying Rs 20,000 fixed monthly costs Rs 13,000 in interest over 6 months. Every extra rupee above minimum due goes directly to principal reduction, which reduces the balance that accrues daily interest.

Ranked by total interest cost: (1) Personal loan at 12-14% APR — cheapest, saves 70-80% vs revolving credit. (2) Balance transfer to a 0% promo card — if available, but watch for processing fees and short promo windows. (3) EMI conversion at 12-15% flat (21-27% effective) — instant, no documentation, but still 2x personal loan cost. (4) Paying fixed amount above minimum — free but slowest. Never just pay minimum due at 49% effective APR.

You transfer your outstanding balance from a high-interest card to another card offering a lower or 0% introductory rate for 60-180 days. Processing fee is 1-3% of the transferred amount. SBI offers 0% for 60 days, HDFC offers flexible EMI plans. On Rs 3 lakh at 42% APR, transferring to 12% promo rate saves approximately Rs 7,500 per month in interest. The catch: you must clear the balance before the promo ends, or it reverts to full revolving rate.

You lose the interest-free grace period on all transactions. Many banks calculate interest on the full outstanding from each transaction date — not just the Rs 1 shortfall. On a Rs 50,000 bill where you pay Rs 49,999, you could be charged Rs 1,500-2,500 in interest + GST, because interest applies retroactively from the date of each purchase. The grace period is only restored after you pay the NEXT full statement amount.

Yes, significantly. Revolving credit costs 42-49% effective APR. EMI conversion costs 12-15% flat rate (21-27% effective APR). On Rs 50,000 for 6 months: revolving costs approximately Rs 14,700 in interest. EMI conversion costs approximately Rs 5,040 plus Rs 199-499 processing fee. You save Rs 9,000+. However, EMI blocks your credit limit and affects CIBIL utilization. A personal loan is even cheaper at 10-14% APR and does not affect card utilization.

SBI has the lowest rates among major banks: SBI Prime Advantage at 1.99% monthly (23.88% APR, 28.2% effective with GST) and SBI Advantage Plus at 2.25% monthly. Among private banks, HDFC Infinia offers 2.50% monthly. Most other cards charge 3.40-3.60% monthly. Note: premium cards like HDFC Regalia charge 3.60% — higher than entry-level cards. Banks assume premium cardholders pay in full and never revolve.

Yes. Call the retention department (not general customer care) and request a rate reduction citing payment history and tenure. About 35% of callers who negotiate get 5-10 percentage point reductions. Some banks offer temporary 1-3 month rate reductions or one-time settlement offers for long-standing revolving balances. HDFC and ICICI occasionally offer 0.99-1.5% monthly promotional rates for 3-6 months on existing balances. If refused, threaten to close the card — retention teams have more authority than regular agents.

No. The RBI requires disclosure and transparency but sets no ceiling on credit card interest rates. In December 2024, the Supreme Court struck down a consumer forum order that had capped rates at 30% per annum. Banks are legally free to charge any rate. Current rates range from 24-53% effective APR (including GST). This is 3-4x the typical personal loan rate. The absence of a rate cap is the widest regulatory gap in Indian consumer credit.

Enter your outstanding balance, select your bank (auto-fills interest rate), and choose a payment strategy — minimum due, fixed monthly amount, or target payoff months. The calculator computes daily interest using the exact formula banks use, adds 18% GST, and shows: total months to payoff, total interest paid, total GST paid, effective APR, and a month-by-month breakdown. It also compares the cost of alternative strategies — EMI conversion, personal loan, and balance transfer.