Cash Credit Interest Calculator — Free Online Tool
🏦 Cash Credit Interest Calculator — Free Online Tool
The Cash Credit Interest Calculator helps you estimate the monthly and total interest payable on a Cash Credit (CC) account based on the outstanding balance, annual interest rate, loan duration, and optional monthly principal repayments.
Unlike an EMI loan, a Cash Credit facility is a revolving working capital loan where interest is charged only on the outstanding balance — not on the sanctioned limit. This calculator provides an estimated interest schedule to help borrowers understand the cost of borrowing over time.
🏦 Cash Credit Interest Calculator
📋 Interest Summary
📅 Monthly Interest Schedule
| Month | Opening Balance (₹) | Interest (₹) | Principal Paid (₹) | Closing Balance (₹) |
|---|
📖 How the Cash Credit Interest Calculator Works
A Cash Credit (CC) account allows borrowers to withdraw funds up to the sanctioned credit limit whenever required. Interest is not charged on the sanctioned limit — instead, it is charged only on the actual outstanding balance.
Interest is calculated only on ₹3,23,000, not on ₹10,00,000.
📐 Formulas Used
Monthly Rate = Annual Interest Rate ÷ 12Monthly Interest:
Monthly Interest = Outstanding Balance × Monthly RateAnnual Interest:
Annual Interest = Outstanding Balance × Annual Interest RateClosing Balance (with repayment):
Closing Balance = Opening Balance − Monthly Principal RepaymentTotal Amount Payable:
Total Amount = Outstanding Balance + Total Interest
🧮 Worked Example
3,23,000 × 12.25% ÷ 12 = ₹3,296.04 / month
3,296.04 × 120 = ₹3,95,524.80
| Month | Opening Balance | Interest | Principal Paid | Closing Balance |
|---|---|---|---|---|
| 1 | ₹3,23,000 | ₹3,296 | ₹10,000 | ₹3,13,000 |
| 2 | ₹3,13,000 | ₹3,194 | ₹10,000 | ₹3,03,000 |
📖 How to Use This Calculator
- Enter CC Sanctioned Limit — Optional. Enter the total credit limit sanctioned by your bank.
- Enter Outstanding Balance — The actual amount currently utilised from your CC account.
- Enter Annual Interest Rate — The rate charged by your bank on the CC facility (e.g., 12.25%).
- Enter Monthly Principal Repayment — If you repay a fixed amount every month, enter it here. Enter 0 for interest-only periods.
- Enter Duration — Select Years or Months and enter the loan duration.
- Click "Calculate Interest" — Get monthly interest, annual interest, total interest, total amount, and a complete month-wise schedule.
⭐ Features
Monthly, annual, and total interest in one click.
Month-wise interest and balance table.
See principal vs interest ratio at a glance.
Simulate interest-only or reducing balance scenarios.
Ideal for CC, OD, and business loans.
All calculations run locally. No data stored.
🔍 Cash Credit vs EMI Loan vs Overdraft
| Feature | Cash Credit (CC) | EMI Loan | Overdraft (OD) |
|---|---|---|---|
| Interest charged on | Outstanding balance | Reducing balance (EMI formula) | Outstanding balance |
| Repayment | Flexible (no fixed EMI) | Fixed monthly EMI | Flexible |
| Sanctioned against | Business assets / stock | Credit history / income | Securities / FD / property |
| Primarily used for | Working capital | Personal, home, car, education | Short-term liquidity |
❓ Frequently Asked Questions
What is a Cash Credit (CC) Loan?
A Cash Credit (CC) loan is a revolving credit facility that allows borrowers to withdraw funds up to a sanctioned limit. Interest is charged only on the amount utilised, not on the entire sanctioned limit.
Is Cash Credit the same as a Personal Loan?
No. Personal loans have fixed EMIs and a fixed repayment schedule. Cash Credit is a revolving facility with interest charged only on the outstanding balance. There is no fixed EMI in a Cash Credit account.
How is Cash Credit interest calculated?
Banks usually calculate interest daily using the outstanding balance: Daily Interest = Outstanding Balance × Annual Rate ÷ 365. The accumulated interest is generally debited monthly. This calculator provides a monthly estimate using: Monthly Interest = Outstanding Balance × Annual Rate ÷ 12.
Why does the interest reduce every month?
If you repay part of the principal, the outstanding balance decreases. Since interest is calculated on the remaining balance, the monthly interest also decreases in subsequent months.
What happens if I don't repay the principal?
If the outstanding balance remains unchanged and the interest rate is unchanged, the monthly interest generally remains the same throughout the duration. Interest continues to accrue every month.
Does this calculator use daily interest?
No. It provides a monthly estimate. Banks usually calculate interest on a daily outstanding basis. Actual values may differ due to daily balance fluctuations, withdrawals, and repayments.
Can I use this calculator for business loans?
Yes. It is suitable for Cash Credit facilities, working capital loans, overdraft accounts, and similar revolving credit arrangements where interest is charged on the outstanding balance.
What is the difference between Cash Credit and an Overdraft?
Cash Credit is usually sanctioned against business assets (stock, receivables) for working capital needs. Overdraft allows withdrawals beyond the available account balance, often against approved securities like fixed deposits or property.
Is there a fixed EMI in Cash Credit?
No. Cash Credit facilities generally do not have fixed EMIs. You can repay any amount at any time within the credit period. Interest continues to accrue on the outstanding balance.
Can the interest rate change?
Yes. Many banks link Cash Credit rates to benchmark rates such as MCLR (Marginal Cost of Funds-based Lending Rate) or external benchmarks (Repo Rate). The applicable rate may change over time, which affects the monthly interest charged.