1. What is Axis Credit Card Interest?

Axis Bank credit card interest is calculated monthly on the outstanding principal balance. The interest rate is typically expressed as an Annual Percentage Rate (APR) which is divided by 12 to get the monthly rate.

2. How Does the Calculator Work?

The calculator uses the simple interest formula:

Where:

• \( I \) — Monthly interest (INR)
• \( P \) — Principal balance (INR)
• \( R \) — Monthly interest rate (APR / 12 as decimal)

Explanation: The formula calculates the interest charged for one month on the outstanding credit card balance.

3. Importance of Interest Calculation

Details: Understanding how interest is calculated helps cardholders make informed decisions about repayments and avoid accumulating excessive debt.

4. Using the Calculator

Tips: Enter your current credit card balance in INR and the APR (typically 36-48% for Axis Bank cards). The calculator will show the monthly interest that would be charged if you don't pay the full balance.

5. Frequently Asked Questions (FAQ)

Q1: How is APR different from monthly rate?
A: APR is the annual rate, while the monthly rate is APR divided by 12. For example, 36% APR = 3% monthly rate.

Q2: When is interest charged on credit cards?
A: Interest is charged when you don't pay the full balance by the due date. There's typically a grace period if you pay in full.

Q3: Does this include other fees?
A: No, this calculates only interest. Late payment fees and other charges would be additional.

Q4: How can I reduce my interest payments?
A: Pay your balance in full each month, or make larger payments to reduce principal faster.

Q5: Is interest compounded daily?
A: Most credit cards calculate interest daily but charge it monthly, which this calculator accounts for.