Credit Card Minimum Payoff Calculator
Calculate the true cost and payoff time of paying only the 5% Minimum Amount Due (MAD) on Indian credit cards.
The 5% Minimum Amount Due (MAD) Trap
In India, credit card issuers (HDFC, SBI Card, ICICI, Axis) calculate the Minimum Amount Due as 5% of the outstanding balance. Monthly finance charges of 3.5% per month (42% annualized) make paying only the minimum take years to clear.
Key Math Considerations
Interest applies on the full balance from the transaction date, plus 18% GST levied on all financing charges and fees.
Frequently Asked Questions
What is the typical interest rate on Indian credit cards?
Rates generally range from 3.0% to 3.75% per month, equaling 36% to 45% annual percentage rate (APR).
Is GST charged on credit card interest?
Yes. The Government of India levies 18% GST on all finance charges and late fees.
Does paying the minimum save you from interest?
No. Paying only the minimum prevents late fees, but interest continues accruing on the remaining balance and new purchases lose their interest-free period.
How can you escape high credit card interest?
Options include taking a personal loan at 11% to 14%, using a balance transfer card, or converting the balance into a bank EMI.
Calculate in three steps
- 1Enter your valuesUse the fields above and check the units shown beside each input.
- 2Run the calculationSelect Calculate to refresh the result with your latest values.
- 3Review or shareCompare the result, reset the form, print it, or share this page.