HDFC Credit Card Interest Formula:
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The HDFC credit card interest calculation determines how much interest you'll pay on outstanding balances. It's based on your average daily balance and annual percentage rate (APR) over a 30-day period.
The calculator uses the formula:
Where:
Explanation: The formula calculates daily interest (APR/365) multiplied by your average balance, then scales it to 30 days.
Details: Understanding credit card interest helps you manage debt more effectively and make informed decisions about payments and balances.
Tips: Enter your average daily balance in INR and APR as a percentage (e.g., enter 36 for 36% APR). Both values must be positive numbers.
Q1: How is average daily balance calculated?
A: Add up each day's ending balance in the billing cycle, then divide by the number of days in the cycle.
Q2: Does HDFC have grace periods?
A: Yes, if you pay your full statement balance by the due date, no interest is charged on new purchases.
Q3: How can I reduce my interest payments?
A: Pay your balance in full each month, make payments early in the billing cycle, or consider balance transfers to lower-rate cards.
Q4: Are there other fees besides interest?
A: Yes, late payment fees, cash advance fees, and other charges may apply depending on your card usage.
Q5: Is this calculation specific to HDFC?
A: While the formula is standard, HDFC may have specific policies about minimum interest charges or rounding that affect actual amounts.