1. What is the ICICI Credit Card Payoff Calculator?

This calculator estimates how long it will take to pay off your ICICI credit card debt based on your current balance, monthly payment, and interest rate. It helps you understand the impact of different payment strategies.

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 payoff (months)

Explanation: The formula calculates how many months it will take to pay off the debt given fixed monthly payments and compound interest.

3. Importance of Payoff Time Calculation

Details: Understanding your payoff timeline helps with financial planning, shows the true cost of minimum payments, and can motivate you to pay more each month to save on interest.

4. Using the Calculator

Tips: Enter your current ICICI credit card balance, the fixed amount you can pay each month, and your annual percentage rate (APR). The calculator will show how long it will take to become debt-free.

5. Frequently Asked Questions (FAQ)

Q1: What if I can't pay more than the minimum?
A: The calculator will show how long it will take with your current payment. Even small increases can significantly reduce payoff time.

Q2: Why does my payment need to exceed the monthly interest?
A: If your payment only covers interest (P × R), your principal never decreases and you'll never pay off the debt.

Q3: How accurate is this calculator?
A: It assumes fixed payments and interest rate. Actual time may vary if these change or if you make additional charges.

Q4: What's ICICI's typical APR?
A: ICICI credit cards typically have APRs between 36-48% per annum (3-4% monthly), but check your latest statement.

Q5: How can I pay off my ICICI card faster?
A: Options include balance transfers to lower-rate cards, personal loans, or increasing monthly payments by cutting expenses.