💳 Credit Card Interest Calculator
Calculate credit card interest charges
Period to calculate interest for (typically 30 days for monthly)
How to Use This Calculator
Enter Credit Card Balance
Input your current credit card balance - the amount you owe that will accrue interest.
Enter APR
Enter your credit card's Annual Percentage Rate (APR). This is the annual interest rate charged on your balance.
Enter Number of Days
Enter the number of days to calculate interest for. Typically 30 days for monthly interest, or enter any period to see interest for that timeframe.
Review Interest
See the interest charged for the specified period, daily interest rate, monthly interest, and annual interest. This helps you understand the cost of carrying a balance.
Formula
Daily Periodic Rate = APR ÷ 365
Interest = Balance × Daily Rate × Number of Days
Monthly Interest = Balance × (APR ÷ 365) × 30
Example Calculation:
If balance is $5,000, APR 18%, for 30 days:
• Daily rate = 18% ÷ 365 = 0.0493%
• Daily interest = $5,000 × 0.000493 = $2.47/day
• Interest for 30 days = $5,000 × 0.000493 × 30 = $73.97
• Monthly interest (30 days): $73.97
• Annual interest: $5,000 × 18% = $900
About Credit Card Interest Calculator
A credit card interest calculator helps you understand how much interest you'll be charged on your credit card balance. Credit cards charge interest daily based on your balance and Annual Percentage Rate (APR). Interest is calculated using a daily periodic rate (APR divided by 365) and applied to your balance. This calculator shows you the interest charges for any time period, helping you understand the cost of carrying a credit card balance.
When to Use This Calculator
- Interest Calculation: Calculate how much interest you'll pay
- Balance Understanding: Understand the cost of carrying a balance
- Payment Planning: Plan payments to minimize interest
- Comparison: Compare interest costs across different cards
Understanding Credit Card Interest
- Daily Interest: Interest is calculated daily, not annually
- Daily Rate: APR divided by 365 (or 360 for some cards)
- Compound Interest: Interest compounds daily on outstanding balances
- Average Daily Balance: Most cards use average daily balance method
- Grace Period: No interest if paid in full by due date
Why Use Our Calculator?
- ✅ Quick Calculation: Instantly see interest charges
- ✅ Multiple Timeframes: Calculate for any number of days
- ✅ Daily/Monthly/Annual: See interest at all timeframes
- ✅ Cost Awareness: Understand true cost of carrying balance
- ✅ 100% Free: No registration or payment required
Tips to Reduce Interest
- Pay in Full: Pay balance in full each month to avoid interest
- Pay More Than Minimum: Reduce balance faster to reduce interest
- Lower APR: Consider balance transfer to lower APR card
- Pay Early: Make payments as soon as possible to reduce daily balance
- Avoid Cash Advances: Cash advances often have higher rates and no grace period
Frequently Asked Questions
How is credit card interest calculated?
Credit card interest is calculated daily using a daily periodic rate (APR ÷ 365). Interest = Balance × Daily Rate × Number of Days. Most cards use the average daily balance method, calculating interest on your average daily balance over the billing cycle.
Do I pay interest if I pay my balance in full?
If you pay your statement balance in full by the due date, you typically don't pay interest due to the grace period. However, if you carry a balance or make a cash advance, you'll pay interest. Always check your card's terms for specific grace period details.
What's the difference between APR and interest rate?
For credit cards, APR and interest rate are typically the same (both refer to the annual interest rate). However, APR may include fees in some contexts. For credit cards, they're usually interchangeable and refer to the annual interest rate charged on balances.
Why is my interest so high?
Credit card interest is high because it compounds daily and credit cards are unsecured debt (no collateral). Typical APRs range from 15-25% or higher. To reduce interest: pay in full each month, pay more than minimum, or transfer to a lower APR card.