Credit Card Cash Advance Fee Calculator

## What is the Credit Card Cash Advance Fee Calculator? The Credit Card Cash Advance Calculator reveals the hidden costs of withdrawing cash from your credit card. Cash advances are one of the most expensive ways to borrow — banks charge a one-time fee (typically 2.5 to 3% of the amount, with a minimum of Rs 250 to Rs 500) plus daily interest (24 to 42% p.a.) from the day of withdrawal with no interest-free period. ## Formula Used Total Cost = Withdrawal Amount x Advance Fee% + Daily Interest Daily Interest = Outstanding x (Annual Rate / 365) x Days No interest-free period on cash advances — interest accrues from Day 1. Typical charges: - Advance fee: 2.5 to 3% (min Rs 250 to Rs 500) - Interest: 2.5 to 3.5% per month (30 to 42% p.a.) - GST: 18% on advance fee and interest ## Worked Example Cash advance: Rs 20,000, Fee: 2.5%, Monthly interest: 3%, Repayment in 30 days Advance fee = Rs 20,000 x 2.5% = Rs 500 Interest for 30 days = Rs 20,500 x (3% x 30/30) = Rs 615 GST on fee + interest (18%) = Rs 200 Total cost = Rs 500 + Rs 615 + Rs 200 = Rs 1,315 Effective cost = Rs 1,315 / Rs 20,000 x 100 = 6.58% for just 30 days (approximately 79% p.a.) ## Frequently Asked Questions 1. How expensive is a credit card cash advance compared to a personal loan? Cash advances are extremely expensive. At 3% monthly interest (36% p.a.) plus 2.5% upfront fee, a Rs 20,000 cash advance repaid after 30 days costs Rs 1,100 (5.5% for just one month). A personal loan at 14% p.a. would cost Rs 233 for the same Rs 20,000 over 30 days — 4.7 times cheaper. 2. Is there an interest-free period on cash advances? No. Unlike regular credit card purchases that have up to 48 interest-free days, cash advances start accruing interest immediately from the date of withdrawal. 3. How much cash can I withdraw from my credit card? Cash advance limit is typically 20 to 40% of your total credit limit. For example, if your credit limit is Rs 1 lakh, you can withdraw Rs 20,000 to Rs 40,000 as cash. 4. Can I avoid the cash advance fee? The only ways to avoid cash advance fees are: use a credit card with 0% cash advance (rare), use a debit card (no fee if from your own account), or use a personal loan/overdraft instead. 5. Does paying minimum amount due on cash advance help? No. Unlike regular purchases where paying the total amount avoids interest, cash advance interest is charged from day one regardless. Any payment is applied to your regular purchases first, not the cash advance.