1. What is the Credit Card Payoff Calculator?

This calculator estimates how long it will take to pay off your Axis Bank credit card balance based on your current balance, monthly payment, and interest rate.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• \( P \) — Principal balance (Rs)
• \( D \) — Monthly payment (Rs)
• \( R \) — Monthly interest rate (annual rate / 12, as a decimal)
• \( T \) — Time to pay off (months)

Explanation: The formula calculates how many months it will take to pay off the balance by accounting for the compounding interest each month.

3. Importance of Payoff Calculation

Details: Knowing your payoff timeline helps with financial planning, understanding the true cost of credit card debt, and motivating debt repayment strategies.

4. Using the Calculator

Tips: Enter your current credit card balance in Rs, your planned monthly payment in Rs, and the annual interest rate (as shown on your statement). All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What if my payment is too low to pay off the balance?
A: The calculator will show a warning if your payment is less than the monthly interest charges, meaning you'll never pay off the balance.

Q2: Does this account for minimum payments?
A: No, this calculates based on fixed monthly payments. Minimum payments typically extend payoff time significantly.

Q3: How accurate is this calculator?
A: It provides a good estimate but actual results may vary slightly due to billing cycles and rounding.

Q4: Can I use this for other credit cards?
A: Yes, the formula works for any credit card, though it's branded for Axis Bank.

Q5: What's the best way to pay off credit card debt faster?
A: Increase monthly payments, reduce spending, or consider balance transfers to lower-interest cards.