Credit Card Minimum Due Trap Calculator
Uncover the predatory compounding math of credit card revolving debt: see how paying 5% minimum due traps borrowers in debt for up to 15 years.
Revolving Card Debt & APR
Total Rupee Interest Drain
₹₹1,95,498.59
Total Amount Paid: ₹₹2,95,498.59 (Original debt: ₹₹1,00,000.00)
Time Required to Pay Off
14.3 Years (172 Months)
Monthly Interest Rate
3.5% / month
Severe Minimum Due Trap Alert!
Paying only the 5% minimum due will take over 14.3 years and cost you over ₹₹1,95,498.59 in interest! Consider paying in full or converting to a lower-interest personal loan.
Monthly Revolving Debt Compounding with 18% GST
All calculations on InvestResearch India execute with 28-digit precision arithmetic via decimal.js, eliminating floating-point drift and adhering to statutory regulatory conventions.
Example: ₹1,00,000 Credit Card Outstanding @ 42% APR Paying 5% Minimum Due
Card Balance: ₹1,00,000 | Interest: 3.5% per month (42% APR) | Payment: 5% Minimum Amount Due
1. Month 1 Minimum Due: ₹5,000 2. Finance Charge = ₹1,00,000 × 3.5% = ₹3,500 + 18% GST (₹630) = ₹4,130 3. Out of your ₹5,000 payment, ₹4,130 pays bank interest & taxes, only ₹870 reduces principal balance! 4. Time to clear entire balance paying only minimum due: 14 Years and 2 Months 5. Total Amount Paid: ₹2,48,500 (You pay nearly 2.5x the borrowed amount)
Statutory Tax Framework (Union Budget FY 2026–27)
Under Indian tax law, interest paid on personal credit cards is not deductible from taxable income under any section, making credit card debt the costliest liability in personal finance.
Frequently Asked Questions
Does paying the Minimum Amount Due protect my CIBIL score?
Paying the minimum amount due avoids late payment fees and prevents your account from being marked as 'Overdue' or 30+ DPD (Days Past Due) on your credit bureau report. However, your Credit Utilization Ratio (CUR) remains elevated, which depresses your credit score over time.
What happens to the interest-free grace period when I revolve balances?
The moment you carry forward any unpaid balance, the 45-day interest-free grace period is instantly revoked for ALL fresh purchases. Every new swipe starts accruing interest from the exact second the transaction occurs.