How this calculation works
Estimate how long an existing revolving balance takes to clear with a fixed monthly payment and no new spending. The first-payment breakdown shows whether most of the payment is servicing interest or reducing debt. This differs from a card EMI purchase: the payment is chosen by you and the payoff date is the unknown, with a smaller final payment when the remaining balance permits.
Worked example
This example uses illustrative inputs. Your current result is shown above.
For a ₹10,000 balance at 12% annual interest and ₹6,000 monthly payment, month one adds ₹100 interest and leaves ₹4,100. Month two adds ₹41 and needs only ₹4,141 to close the balance. Payoff takes two months, with ₹141 total interest and ₹10,141 paid.
Assumptions and limits
- No new purchases, cash withdrawals, fees or rate changes occur; interest is added monthly using annual rate divided by twelve.
- The chosen payment must exceed first-month interest. Actual card statements may use daily balances, transaction-specific rates and changing minimum payments.
Questions people ask
Why is a payment below first-month interest rejected?
Such a payment would fail to reduce this balance under the fixed-rate model, so it cannot produce the requested payoff path.
Should I enter the card’s minimum-payment percentage?
No. Enter a fixed currency amount paid every month. If the real minimum falls as the balance shrinks, paying only that moving minimum can take longer than this fixed-payment scenario.