Fill out the steadiness and rate of interest prompts, choose the way you wish to calculate the debt curiosity (by month-to-month cost of variety of months), and at last the time or cost prompts. The curiosity owed will robotically seem. For more information, preserve studying beneath the calculator.
Easy methods to use the bank card curiosity calculator
Right here’s what every a part of the calculator means:
- Present bank card steadiness: How a lot you at present owe in your bank card.
- Rate of interest: The annual proportion charge (APR) charged by your bank card, sometimes 12% to twenty%.
- Calculate your curiosity: You’ll be able to calculate the quantity of curiosity both by your month-to-month cost or by various months. For the primary possibility, enter the quantity of the cost subsequent to “Month-to-month cost.” Or click on the second possibility and enter the variety of months subsequent to “Desired time to repay steadiness.”
How is bank card curiosity calculated?
In case you don’t repay your full steadiness earlier than the cost 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 charge (APR), starting from 12% to round 20% (typically much more) for purchases. The APR is an annual charge, however bank card curiosity is calculated each day and charged month-to-month.
To seek out out the each 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 each day charge is 0.0548%. To calculate month-to-month curiosity expenses, bank card multiply a cardholder’s common each day steadiness throughout every billing cycle (a set interval of 28 to 31 days) by the each day charge.
Let’s say you’re carrying a steadiness of $1,000 on a card with a 20% APR. At a each day rate of interest of 0.0548%, the each day cost might 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 increased 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 may be very costly, so restrict it to emergencies solely.
Easy methods to keep away from paying bank card curiosity
One of the simplest ways to keep away from paying bank card curiosity is to repay not simply the “minimal cost” proven in your bank card assertion, however the full quantity you borrowed, on time, each month. Sure, each month. In case you can’t, make a minimum of the minimal cost by the due date, to keep away from late charges and any dings in your credit score historical past. The minimal cost is both a flat charge (for instance, $10) or a proportion of your excellent steadiness (sometimes 3%), whichever is increased. (Word: In Quebec, the bank card minimal cost is 4.5%. As of Aug. 1, 2025, will probably be 5%.)
In case you don’t make the minimal cost by the due date, you may be charged a late charge starting from $25 to $40, which is able to seem in your subsequent assertion. In case you’re repeatedly late or cease making funds, you additionally threat harming your credit score rating, which might make it more durable so that you can get inexpensive credit score sooner or later. Your bank card supplier can also increase your rate of interest. In case you’re receiving a promotional rate of interest, you could lose it and should pay the common APR. Finally, the cardboard supplier might even cancel your bank card and switch your debt to a debt assortment company.
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Easy methods to scale back bank card debt
In case you carry a steadiness, these 5 methods may also help you pay much less curiosity on bank card debt.