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Calculators

Minimum due calculator

Paying only the minimum keeps you from a late fee, not from interest. See how long the balance lasts and what it costs, against paying a fixed amount each month.

₹
%
% of the bill
Usually about 5% of the bill, at least ₹200. Check your statement.
₹a month
Minimum only: time to clear–
Minimum only: interest and GST–
Fixed amount: time to clear–
You save with the fixed amount–

What you still owe, month by month

How this is worked out

Each month, interest at the monthly rate is added to what you owe, with 18% GST on that interest. Then the payment is taken off. The minimum due is the percentage you choose of the new balance, but never less than ₹200 and never less than that month's interest and GST, because RBI requires that the minimum payment does not let the balance grow. No new purchases are added. In real life new spends also lose their interest-free period while a balance is unpaid, so the cost is usually higher than shown.

What RBI requires

  • The minimum amount due must not cause negative amortisation, meaning the balance must not grow if you pay it.
  • Your statement must warn that paying only the minimum takes months or years to clear the balance, with interest on interest.
  • The interest-free period stops while any part of last month's bill is unpaid.
  • A late fee can be charged, and the account reported as past due, only after more than 3 days past the due date.

Guides

Questions

Does paying the minimum due hurt my credit score?

Paying at least the minimum by the due date keeps the account from being reported as late. But the balance you carry keeps your credit utilisation high, which can lower your score.

What is the fastest way out of card debt?

Stop new spends on that card, pay as much as you can above the minimum, and compare a lower-rate option such as converting the balance to an EMI or a personal loan, using the card EMI vs loan calculator.

Why does the interest seem higher than 3.75%?

GST of 18% is added to the interest, so 3.75% becomes about 4.4% a month, and the interest-free period on new spends is lost while a balance remains.

Sources

For illustration only. Your bank works out the minimum due its own way, and may include EMIs, fees and over-limit amounts in it. Your statement is the final word.

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