Fill out the stability and rate of interest prompts, choose the way you need to calculate the debt curiosity (by month-to-month fee of variety of months), and eventually the time or fee prompts. The curiosity owed will robotically seem. For more information, maintain studying under the calculator.
The way to use the bank card curiosity calculator
Right here’s what every a part of the calculator means:
- Present bank card stability: How a lot you at the moment owe in your bank card.
- Rate of interest: The annual share fee (APR) charged by your bank card, usually 12% to twenty%.
- Calculate your curiosity: You possibly can calculate the quantity of curiosity both by your month-to-month fee or by a lot of months. For the primary choice, enter the quantity of the fee subsequent to “Month-to-month fee.” Or click on the second choice and enter the variety of months subsequent to “Desired time to repay stability.”
How is bank card curiosity calculated?
If you happen to don’t repay your full stability earlier than the fee due date proven in your bank card assertion every month, you’ll pay curiosity on what you owe. Each bank card has an annual share fee (APR), starting from 12% to round 20% (typically much more) for purchases. The APR is an annual fee, however bank card curiosity is calculated every day and charged month-to-month.
To search out out the every day rate of interest, divide the APR by 365 (variety of days in a yr). For instance, for a card with an APR of 20%, the every day fee is 0.0548%. To calculate month-to-month curiosity prices, bank card multiply a cardholder’s common every day stability throughout every billing cycle (a set interval of 28 to 31 days) by the every day fee.
Let’s say you’re carrying a stability of $1,000 on a card with a 20% APR. At a every day rate of interest of 0.0548%, the every day cost will likely be about $0.55. Multiply that by the variety of days within the billing cycle to see your month-to-month curiosity. For 30 days, the curiosity would add as much as $16.50.
Be aware that bank card suppliers cost larger rates of interest for money advances (borrowing money from a bank card) and cash-like transactions, with APRs starting from 23% to twenty-eight%. Plus, curiosity begins accumulating from the date you’re taking out the money—there’s no grace interval, just like the one you get when making purchases in your card (usually 21 days from the date your bank card assertion is issued). Borrowing money with a bank card may be very costly, so restrict it to emergencies solely.
The way to keep away from paying bank card curiosity
The easiest way to keep away from paying bank card curiosity is to repay not simply the “minimal fee” proven in your bank card assertion, however the full quantity you borrowed, on time, each month. Sure, each month. If you happen to can’t, make at the very least the minimal fee by the due date, to keep away from late charges and any dings in your credit score historical past. The minimal fee is both a flat fee (for instance, $10) or a share of your excellent stability (usually 3%), whichever is larger. (Be aware: In Quebecthe bank card minimal fee is 4.5%. As of Aug. 1, 2025, it will likely be 5%.)
If you happen to don’t make the minimal fee by the due date, you may be charged a late charge starting from $25 to $40, which can seem in your subsequent assertion. If you happen to’re repeatedly late or cease making funds, you additionally threat harming your credit score rating, which may make it tougher so that you can get inexpensive credit score sooner or later. Your bank card supplier may increase your rate of interest. If you happen to’re receiving a promotional rate of interest, you might lose it and should pay the common APR. Ultimately, the cardboard supplier may even cancel your bank card and switch your debt to a debt assortment company.
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The way to cut back bank card debt
If you happen to carry a stability, these 5 methods will help you pay much less curiosity on bank card debt.