1. What is HDFC Credit Card Interest Calculation?

The HDFC Credit Card Interest Calculator computes the monthly interest charged on your outstanding credit card balance. It helps you understand how much interest you'll pay if you don't clear your full balance each month.

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 equation calculates interest by multiplying your outstanding balance by the monthly interest rate (annual rate divided by 12).

3. Importance of Interest Calculation

Details: Understanding your credit card interest helps in financial planning, avoiding debt traps, and making informed decisions about repayment strategies.

4. Using the Calculator

Tips: Enter your current outstanding balance and the APR (Annual Percentage Rate) of your HDFC credit card. The calculator will show the interest you'll be charged for that month.

5. Frequently Asked Questions (FAQ)

Q1: How is HDFC credit card interest calculated?
A: Interest is calculated daily but charged monthly on your outstanding balance using the formula: (Outstanding Amount x APR/12)/100.

Q2: What is the typical APR for HDFC credit cards?
A: HDFC credit cards typically have APRs ranging from 24% to 48% per annum, depending on the card type and customer profile.

Q3: When is interest charged on my credit card?
A: Interest is charged if you don't pay your total outstanding amount by the payment due date each month.

Q4: How can I avoid paying interest?
A: Pay your total outstanding amount in full by the due date each month to avoid any interest charges.

Q5: Does this include other fees?
A: No, this calculator only computes interest. Late payment fees, GST, or other charges are not included.