1. What is the HDFC Credit Card Loan Payoff Calculator?

This calculator estimates how long it will take to pay off an HDFC credit card loan based on your current balance, monthly payment amount, and annual percentage rate (APR).

2. How Does the Calculator Work?

The calculator uses the loan payoff equation:

Where:

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

Explanation: The equation calculates how many months it will take to pay off the loan based on the relationship between your payment, the principal, and the interest rate.

3. Importance of Loan Payoff Calculation

Details: Understanding your payoff timeline helps with financial planning, budgeting, and evaluating whether to make additional payments to reduce interest costs.

4. Using the Calculator

Tips: Enter your current loan balance in INR, your planned monthly payment amount in INR, and your credit card's APR. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Why does my payment need to be higher than the monthly interest?
A: If your payment only covers the interest, you'll never pay down the principal. The payment must exceed the monthly interest to reduce your balance.

Q2: What if I make additional payments?
A: Extra payments will reduce your principal faster, shortening the payoff time and reducing total interest paid.

Q3: How accurate is this calculator?
A: It provides a good estimate assuming fixed payments and interest rate. Actual results may vary if your APR changes or you adjust payments.

Q4: What's the best strategy to pay off credit card debt faster?
A: Pay more than the minimum, consider balance transfers to lower APR cards, or explore personal loan options with lower rates.

Q5: Does this work for other credit cards or loans?
A: Yes, the formula works for any fixed-rate loan, though HDFC-specific terms may vary.