1. What is the Minimum Payment Calculator?

This calculator estimates how long it will take to pay off credit card debt in India by making only the minimum payments each month. It considers your principal balance, minimum payment amount, and annual interest rate.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• \( P \) — Principal balance (INR)
• \( MP \) — Minimum payment (INR)
• \( R \) — Monthly interest rate (APR / 12)
• \( T \) — Time to pay off (months)

Explanation: The formula calculates how many months it will take to pay off the debt when making minimum payments that cover at least the interest plus a small amount of principal.

3. Importance of Payment Calculation

Details: Understanding how long minimum payments will take helps consumers realize the true cost of carrying credit card debt and motivates paying more than the minimum.

4. Using the Calculator

Tips: Enter your current credit card balance in INR, the minimum payment amount (typically 3-5% of balance in India), and your card's annual interest rate (APR).

5. Frequently Asked Questions (FAQ)

Q1: Why does paying minimum take so long?
A: Minimum payments are designed to mostly cover interest with only a small principal reduction, leading to long repayment periods.

Q2: What's a typical minimum payment in India?
A: Most Indian credit cards require 5% of the outstanding balance or ₹100 (whichever is higher) as minimum payment.

Q3: How can I pay off debt faster?
A: Pay more than the minimum, make bi-weekly payments, or consider balance transfer to lower-interest cards.

Q4: Does this account for late fees?
A: No, this calculation assumes on-time minimum payments with no additional charges or spending.

Q5: What if my card has different minimum payment rules?
A: Some cards may have fixed minimums or different calculation methods - check your card's terms.