Credit Card EMI Calculator — Calculations & Slabs for FY 2026-27

The minimum due is typically just 5% of your total balance. If you pay only this, almost the entire amount goes towards paying off interest, leaving the principal balance untouched. It can take 10 to 30 years to clear a small balance this way, costing you thousands in interest.

Credit card interest is calculated using the Daily Average Balance method. Interest rates are usually quoted monthly (e.g., 3.5% per month), which compounds to an annual percentage rate (APR) of 42% to 50% per year, making it one of the most expensive forms of debt.

If your monthly payment is less than or equal to the interest accrued in that month, your payment will not cover the cost of interest. The remaining interest will be added to your principal balance, causing your debt to grow larger every month—a state known as negative amortization.

Yes, converting outstanding credit card debt to a bank EMI usually lowers the interest rate from 40%+ down to 14% to 20% per year, and establishes a fixed repayment timeline (e.g., 6 to 24 months) which helps systematically clear the debt.

You can verify the values against the official notifications listed in our data sources section at the bottom of the page.