1. What is HDFC Credit Card Interest?

The HDFC Credit Card Interest Calculator computes the monthly interest charged on outstanding credit card balances using the principal amount and annual percentage rate (APR).

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 formula calculates the interest charged for one month on the outstanding credit card balance.

3. Importance of Interest Calculation

Details: Understanding monthly interest helps cardholders make informed decisions about repayments and avoid accumulating excessive debt.

4. Using the Calculator

Tips: Enter the principal balance in INR and the annual percentage rate (APR). Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: How is APR converted to monthly rate?
A: Divide the APR by 12 (months) and convert from percentage to decimal (divide by 100).

Q2: Is this compound interest?
A: No, this calculates simple monthly interest. Actual credit cards may compound interest daily.

Q3: What's a typical HDFC credit card APR?
A: HDFC credit cards typically have APRs ranging from 24% to 48% annually.

Q4: How can I reduce my interest payments?
A: Pay your balance in full each month or make payments before the statement date.

Q5: Does this include other charges?
A: No, this only calculates interest. Late fees and other charges may apply separately.