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 routinely seem. For more information, maintain studying beneath the calculator.
The best 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 present owe in your bank card.
- Rate of interest: The annual proportion fee (APR) charged by your bank card, sometimes 12% to twenty%.
- Calculate your curiosity: You may calculate the quantity of curiosity both by your month-to-month fee or by a variety 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?
When you 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 proportion 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 12 months). For instance, for a card with an APR of 20%, the every day fee is 0.0548%. To calculate month-to-month curiosity expenses, 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 probably 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.
Word that bank card suppliers cost greater 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 are taking out the money—there’s no grace interval, just like the one you get when making purchases in your card (sometimes 21 days from the date your bank card assertion is issued). Borrowing money with a bank card could be very costly, so restrict it to emergencies solely.
The best 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. When you can’t, make not less than 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 proportion of your excellent stability (sometimes 3%), whichever is greater. (Word: In Quebec, the bank card minimal fee is 4.5%. As of Aug. 1, 2025, it will likely be 5%.)
When you don’t make the minimal fee by the due date, you may be charged a late price starting from $25 to $40, which is able to seem in your subsequent assertion. When you’re repeatedly late or cease making funds, you additionally threat harming your credit score, which may make it more durable so that you can get reasonably priced credit score sooner or later. Your bank card supplier may additionally increase your rate of interest. When you’re receiving a promotional rate of interest, it’s possible you’ll lose it and need to pay the common APR. Ultimately, the cardboard supplier may even cancel your bank card and switch your debt to a debt collection agency.
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The best way to cut back bank card debt
When you carry a stability, these 5 methods might help you pay much less curiosity on bank card debt.
