Credit Card Arbitrage Calculator 2026:Earn Interest on the Bank's Money
Your bank gives you 45 interest-free days on every purchase. Most people waste it. This calculator shows you exactly how much free profit you're leaving on the table.
The 45-Day Hack
Every credit card in India has a billing cycle (usually 30 days) followed by a payment due date (15–25 days later). The total window between Purchase Day → Due Date is your interest-free grace period—up to 55 days on premium cards.
The hack: make the purchase on Day 1 of your billing cycle. This gives you the maximum float window. Then park the equivalent cash in a liquid mutual fund yielding ~6.8% p.a. (Feb 2026). The bank finances your purchase at zero cost. You collect interest. On the due date, redeem and pay in full.
Purchase on Day 1 of billing cycle
Maximises your grace window. Buying on the last day of the cycle gives you only ~25 days — not 45.
Park cash in a Liquid Fund immediately
ICICI Prudential, Mirae Asset, Axis Liquid. T+1 redemption. No exit load after 7 days. Your money is never locked.
Let interest accrue for 45 days
The fund earns daily returns. At 6.8% on ₹1L, that is ₹839 per cycle — ₹10,068 per year at zero risk.
Redeem 2 days before due date. Pay in FULL.
T+1 settlement means initiate redemption 2 working days early. Pay the full outstanding, never the minimum due.
Maximized HRA? Now Maximize Your Bill Cycle.
If you've already optimized your HRA exemption via parental rent—good. That saves you ₹30,000–₹60,000 in tax per year. Credit card arbitrage is the next layer: it turns the money you're already spending into a yield-generating asset for 45 days every month.
Combined, the two strategies can save a salaried Indian employee ₹70,000–₹1,20,000 per year through nothing more than timing and documentation. No risk. No investment needed beyond what you already spend.
HRA Arbitrage
₹45K–₹60K
tax saved/year
Bill Cycle Hack
₹10K–₹50K
free interest/year
Feb 2026 Liquid Fund Rates
* Indicative annualised yields. T+1 redemption. No exit load after 7 days. Past performance not guaranteed. Verify before investing.
2026 Strategy Guide — Risk Warnings
Never miss the due date
36–48% p.a. interest on the full outstanding — retroactively from purchase date. Set auto-debit for full outstanding, not the minimum due.
T+1 settlement on working days only
Initiate liquid fund redemption 2 working days before due date. Weekends and public holidays do not count.
Liquid fund returns are not guaranteed
Returns move with RBI repo rate decisions. At current Feb 2026 levels they are stable, but monitor for policy changes.
Calculate Your Free Profit
Instant · No sign-up · 100% client-side
Amount you plan to charge to your credit card
Default 6.8% = Feb 2026 avg for top liquid funds
Your Free Profit
₹838.36
on ₹1,00,000.00 parked for 45 days @ 6.8% p.a.
If you do this every month, you earn ₹10,060.27 per year for free.
A longer grace period = more profit. Cards with 50-day cycles earn ₹93.15 extra vs 45-day cards on the same spend.
Apply Now — See Top Cards with 50-Day Grace Period →Always pay the FULL amount by the due date. A single missed payment triggers 36–48% p.a. interest on the entire outstanding, retroactively from purchase date—wiping out months of arbitrage profit. Set an auto-debit mandate for the full outstanding balance.
Where to Park Your Arbitrage Cash?
To execute the 45-day hack, you need a Demat account that supports instant Liquid Fund redemptions. These are our 2026 expert-verified picks.
Upstox
Expert Pick 2026- ✓Zero Account Opening Fee
- ✓T+1 Liquid Fund Redemptions
- ✓Paperless 5-Min KYC
- ✓Zero brokerage on MF & IPOs
- ✓Zero AMC for 1st year
Simple, quick & paperless onboarding
Groww
Liquid Fund Pioneer- ✓Zero Account Opening Fee
- ✓T+1 Liquid Fund Redemptions
- ✓Paperless 5-Min KYC
- ✓Zero commission on Mutual Funds
- ✓Beginner-friendly dashboard
Trusted by 5 Cr+ investors in India
Angel One
Full-Service Pick- ✓Zero Account Opening Fee
- ✓T+1 Liquid Fund Redemptions
- ✓Paperless 5-Min KYC
- ✓Free AMC for 1st year
- ✓₹0 brokerage — all orders, 1st month
- ✓Robo Orders & SmallCase access
Open your account in just 5 minutes
* FreeFuelBill.in may earn a referral fee if you open an account via the links above. All platforms are SEBI-registered brokers. Features verified as of February 24, 2026. Groww link is non-affiliate; Upstox & Angel One links include affiliate tracking.
Credit Card Arbitrage 2026 — FAQ
What is the 45-day credit card arbitrage hack?
Make large purchases on Day 1 of your billing cycle, then park the equivalent cash in a liquid fund for 45 days. The bank finances your purchase interest-free while your money earns ~6.8% p.a. On the due date, redeem and pay in full. Profit = Amount × Rate × (Days ÷ 365).
How much can I earn with this strategy in 2026?
On ₹1,00,000 × 45 days × 6.8% = ₹839 per cycle. On ₹5,00,000 monthly spend that is ₹4,192/month — ₹50,300/year — free. Feb 2026 liquid fund rates range 6.5% (SBI) to 7.1% (Mirae Asset).
Which liquid funds are best for parking credit card bill amounts?
Mirae Asset Cash Management (~7.1%), ICICI Prudential Liquid (~7.0%), Axis Liquid (~6.9%), HDFC Liquid (~6.8%), SBI Liquid (~6.7%). All are T+1 redemption with no exit load after 7 days.
Is this legal?
Yes — using your card's standard interest-free grace period and parking cash in a regulated SEBI mutual fund is entirely legal. It doesn't violate any card terms of service or any Indian regulations.
What is the biggest risk?
Missing the due date. Indian banks charge 36–48% p.a. on the full outstanding — retroactively from purchase date — if you miss the deadline. Always auto-debit the full outstanding amount.
Related Tools
Top 6 cards with longest grace periods, best rewards, zero annual fee.
→ HRA Parental Rent KitCombine HRA tax savings with bill cycle arbitrage for ₹70K+ annual benefit.
→ Best Fuel Credit CardsSave 4–5% on every petrol/diesel purchase on top of arbitrage returns.
→ Best Lifestyle Credit Cards 2026HDFC Millennia, Axis Neo, SBI SimplyCLICK — ranked for everyday arbitrage spends.
Every Billing Cycle Without a 50-Day Card Is Profit Left Behind
A card with a 50-day grace period earns 11% more arbitrage profit than a 45-day card on the same spend. See our top 6 picks updated for February 2026.
Apply Now — See Top 6 CardsLast Updated: February 24, 2026 · Author: Rahul Sharma, FreeFuelBill.in