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). It helps you plan your debt repayment strategy.

2. How Does the Calculator Work?

The calculator uses the loan 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 loan by accounting for the decreasing balance and compounding interest.

3. Importance of Loan Payoff Calculation

Details: Knowing your payoff timeline helps with financial planning, budgeting, and understanding the true cost of credit card debt. It can motivate you to increase payments to save on interest.

4. Using the Calculator

Tips: Enter your current loan balance, the fixed monthly payment you can afford, and your card's APR. For accurate results, ensure your payment is more than the monthly interest (P × R).

5. Frequently Asked Questions (FAQ)

Q1: What if I can't make fixed monthly payments?
A: This calculator assumes fixed payments. If payments vary, the actual payoff time may differ. Consider setting up automatic fixed payments.

Q2: How can I pay off my loan faster?
A: Increase monthly payments, make bi-weekly payments instead of monthly, or transfer balance to a lower-interest card.

Q3: Does this include HDFC's fees?
A: The calculation only includes interest. If your loan has additional fees, the actual payoff time may be longer.

Q4: What's the minimum payment on HDFC credit cards?
A: Typically 5% of outstanding balance or ₹100, whichever is higher. Paying only the minimum extends payoff time significantly.

Q5: How accurate is this calculator?
A: It provides a good estimate assuming fixed payments and interest rate. Actual payoff may vary if rates change or payments differ.