Just wondering what and how will be the interest charged on the unpaid credit card balance
When you don’t pay the full outstanding balance on your credit card by the due date, interest is charged on the entire unpaid amount from the date of each transaction, not just from the due date.
The interest is calculated daily using a simple formula:
Interest = Outstanding Amount × (Annual Interest Rate ÷ 365) × Number of Days.
**I am going to use some So please Bare with me **
| Details | Value |
|---|---|
| Transaction Date | 1st June 2025 |
| Purchase Amount | ₹15,000 |
| Payment Due Date | 20th June 2025 |
| Amount Paid on Due Date | ₹5,000 |
| Unpaid Balance | ₹10,000 |
| Annual Interest Rate | 42% |
| Daily Interest Rate | 42 ÷ 365 = 0.115% per day |
| Interest Period | 21st June – 30th June (10 days) |
| Interest Calculation | ₹10,000 × 0.115% × 10 |
| Interest Charged | ₹115 |
| GST on Interest (18%) | ₹20.7 |
| Total Extra Charges | ₹135.70 |
So this is all the math going on BTS,I tried my best to explain this But still if you have some question you can ask me on this finonja community…
Happy swiping 