Credit card payoff

Interest accrues monthly on the opening balance with no new spending; 18% GST applies to interest and fees. The minimum due follows the selected issuer style: a share of the balance, or the full month's interest plus a share of principal, never below the floor. RBI rules mean unpaid fees and taxes are not compounded and the balance never rises while nothing new is spent. The fixed-payment route pays the same amount each month; the EMI route converts the balance at the EMI rate with the processing fee. Once the full amount is unpaid, the grace period is lost and interest runs from the transaction date; the model assumes that has already happened.

Rules: Issuer minimum-due formulas from July 2025, reviewed 2026-09-11.

RBI · Master Direction on credit and debit cards, 2022

Estimates are not personalised financial advice. Review assumptions before use.