1. What is the Credit Card Payoff Calculator?

The HDFC Bank Credit Card Payoff Calculator estimates how long it will take to pay off your credit card balance based on your current principal, monthly payment amount, and annual percentage rate (APR).

2. How Does the Calculator Work?

The calculator uses the credit card payoff formula:

Where:

• \( P \) — Principal balance (INR)
• \( D \) — Monthly payment (INR)
• \( R \) — Monthly interest rate (APR / 12)
• \( T \) — Time to payoff (months)

Explanation: The formula calculates how many months it will take to pay off the debt considering compound interest. It assumes fixed monthly payments and interest rate.

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, the fixed monthly payment you can afford, and your card's APR. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What if my payment is too low to pay off the debt?
A: The calculator will show infinity (∞) if your payment doesn't cover the monthly interest (D ≤ P × R).

Q2: How accurate is this calculator?
A: It provides a good estimate assuming fixed payments and interest rate. Actual results may vary with changing rates or payment amounts.

Q3: What's a good monthly payment amount?
A: Ideally, pay more than the minimum due. Paying 2-3% of your balance monthly will take many years to pay off.

Q4: Does this work for other credit cards?
A: Yes, the formula works for any credit card, though this calculator is branded for HDFC Bank.

Q5: How can I pay off my card faster?
A: Increase monthly payments, make biweekly payments, or transfer balance to a lower-interest card.