Credit Card Repayment Calculator India With Tax

Credit Card Repayment Formula:

\[ T = \frac{\log\left(\frac{P}{P - D \times R}\right)}{\log(1 + R)} \] \[ GST = I \times \text{Tax Rate} \]

Principal Balance (P):

INR

Monthly Payment (D):

INR

Annual Interest Rate (APR):

GST Rate:

Time to Pay Off:

Total Interest:

GST on Interest:

Total Cost:

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1. What is the Credit Card Repayment Calculator?

This calculator estimates how long it will take to pay off your credit card debt in India, including the impact of GST on the interest charged. It helps you understand the true cost of carrying credit card debt.

2. How Does the Calculator Work?

The calculator uses the following formulas:

\[ T = \frac{\log\left(\frac{P}{P - D \times R}\right)}{\log(1 + R)} \] \[ GST = I \times \text{Tax Rate} \]

Where:

\( P \) — Principal balance (INR)
\( D \) — Monthly payment (INR)
\( R \) — Monthly interest rate (APR / 12, as decimal)
\( T \) — Time to pay off (months)
\( I \) — Total interest (INR)
\( \text{Tax Rate} \) — GST rate (as decimal, e.g., 18% = 0.18)

Explanation: The formula calculates how many months it will take to pay off the debt with fixed monthly payments, then adds GST to the total interest charged.

3. Importance of GST on Credit Card Interest

Details: In India, GST (currently 18%) is charged on credit card interest payments. This additional tax increases the true cost of carrying credit card debt, making it even more important to pay off balances quickly.

4. Using the Calculator

Tips: Enter your current credit card balance, the monthly amount you can pay, your card's annual interest rate (APR), and the current GST rate (default is 18%). All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Why is GST charged on credit card interest?
A: In India, financial services including credit card interest are subject to GST as they are considered taxable services.

Q2: What if I only make minimum payments?
A: Minimum payments (typically 5% of balance) will result in much longer repayment periods and higher interest costs with GST.

Q3: How can I reduce my repayment time?
A: Increase monthly payments, transfer balance to lower-rate cards, or consider personal loans with lower interest rates.

Q4: Does GST apply to all credit card charges?
A: GST applies to interest charges and certain fees, but not to the principal amount of purchases.

Q5: Is this calculator accurate for all credit cards?
A: It provides estimates. Actual terms may vary by card issuer and if rates change during repayment.