1. What is the ICICI Credit Card Calculator?

The ICICI Credit Card Calculator estimates the time required to pay off your credit card debt based on your current balance, monthly payment amount, and annual percentage rate (APR).

2. How Does the Calculator Work?

The calculator uses the credit card payoff formula:

Where:

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

Explanation: The formula accounts for compound interest on your credit card balance and calculates how long it will take to pay off the debt with regular monthly payments.

3. Importance of Debt Payoff Calculation

Details: Understanding your payoff timeline helps with financial planning, budgeting, and evaluating whether you should increase payments or consider balance transfer options.

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

Q1: Why does my payment need to exceed the monthly interest?
A: If your payment only covers the interest (or less), your principal balance will never decrease, and you'll never pay off the debt.

Q2: What's a typical ICICI credit card APR?
A: ICICI credit cards typically have APRs ranging from 36% to 48% per annum (3-4% monthly).

Q3: How can I pay off my debt faster?
A: Increase your monthly payment amount, make bi-weekly payments instead of monthly, or consider a balance transfer to a lower-interest card.

Q4: Does this include any fees or charges?
A: This calculation only includes interest charges. Late fees or other penalties would require additional payments.

Q5: Is this calculator accurate for minimum payments?
A: Yes, but minimum payments typically result in very long payoff periods due to high interest accumulation.