Credit Card Interest Calculator Advertiser disclosure You’re our first priority. Every time. We believe that every person should be able to make financial decisions with confidence. And while our site doesn’t include every financial or company product available on the market, we’re proud that the guidance we offer as well as the advice we provide and the tools we develop are objective, independent, straightforward — and cost-free. So how do we earn money? Our partners pay us. This may influence which products we write about (and the way they appear on our website), but it doesn’t affect our recommendations or advice that are based on many hours of study. Our partners do not be paid to ensure positive reviews of their products or services. . Credit Card Interest Calculator Calculate your credit card balance and interest rate to see what your interest costs will be for a month. Written by Paul Soucy Lead Assigning Editor Credit cards, credit scoring, personal finance Paul Soucy has led the Credit Cards content team at NerdWallet since the year 2015. He served as an editor for USA Today, The Des Moines Register and the Meredith/Better Homes and Gardens family of magazines for more than 20 years. He also established a profitable freelance writing and editing business with a focus on personal and business finances. He was editor of USA Today Weekly International Edition for six years and won the highest honor from ACES: The Society for Editing. He holds a bachelor’s degree in journalism as well as a master of Business Administration. The family lives in Des Moines, Iowa, with his fiancee, his two sons and a dog named Sam. January 25, 2023 Edited By Kenley Young Assigning Editor | Credit cards, credit scores Kenley Young directs daily credit coverage of credit cards for NerdWallet. Prior to that, he worked as a homepage editor and producer of digital content for Fox Sports, and before that a front page editor at Yahoo. He has decades of experience in digital and print media, including stints as an editor at the copy desk, a wire editor and an editor of the metro for the McClatchy newspapers chain. Email:

. The majority of items featured here come from our partners, who pay us. This affects the products we review and the location and manner in which the product appears on the page. However, this does not affect our assessments. Our opinions are our own. Here is a list of and . Interest on credit cards is a regular part of the lives of tens of millions of credit card holders However, for many, it’s an unknown the exact method by which credit card interest is calculated — how the interest rate on the card’s account is translated into the amount of finance charged on their monthly statements. The credit card interest calculator from NerdWallet will calculate the math for you. Begin by entering numbers or follow the instructions below for guidance on how to get the most accurate result. What is the basis of the calculation of credit card interest How much interest you are due on a credit-card can be calculated by using a handful of factors such as the grace period. Let’s begin by examining the grace period. When you make sure to pay the credit card in full by the due date every month, you’ll never have the expense of paying interest for purchases. Period. There’s no need for an interest calculator for credit cards because there’s no need to determine. The rate of interest . If you roll debt over from one account to the next, though there is a chance of interest accruing. >> LEARN MORE: Average daily balance When you receive your statement from your credit card arrives via mail (or is posted online) it will show the balance total at the day that ended each billing time. However, this isn’t the number that is used in calculating your interest charge. The key number is your average daily balance throughout the billing period. The credit card company will take the balance of your account each day during that period and adds it all in a single sum, and then divides it by the number of days within the period. As an example, let’s say you had a 30 day statement cycle, and you began with a balance of $100: If you made no payments or charges for the whole cycle, the average daily balance is $100. In the event that you received a $45 charge posted on the 11th day of the cycle, and there was no other activity the average daily amount would have been $130. (Ten days at $100, and the 20th day at $145.) If you had an $45 charge at the end of day 11 of the cycle, and you made an amount of $60 on the 21st day, the average daily amount would have been $110. (That’s the 10 days you pay $100 for, followed by the same amount of time at $145, then 10-days at the $85 mark.) Of course, tracking your daily balance is simple in the case of only one purchase and only one payment each month. However, if you are using your credit card on a regular basis through the entire month, the task becomes much harder — and figuring the average daily balance over the entire month can be a nightmare. We’ve developed an application that allows you to enter your transactions and purchases over the course of a month to calculate your average daily balance: Click HERE TO OPEN the average daily balance TOOL The credit card interest calculator requires users to input their account balance. Averaging your daily balance will produce the most accurate results. To get a rough estimate, you can look at the closing balance shown on your statement or figure out the balance of your account on the typical day. Learn more: Interest rate The interest rate that applies to purchases on your account will be printed upon your month-end statement. Rates of interest are stated as an annual percentage rate, or APR. Although the rate listed is an annual rate, credit cards usually charge interest on an ongoing basis. The rate charged on a daily basis is typically 1/365th of your annual cost. If your APR is, say, 18.99%, the daily rate is approximately 0.052 percent that is 1/365th of 18.99 percent. Interest on credit cards typically compounds each day. It means the interest you pay on day 1 of the month is added to the calculation for day 2. Then, the interest from day 2 is then added to calculations for the day following and then on. The monthly bill typically includes all interest been accrued, as well as any fees you have incurred and a small amount of your principal balance. Nerdy Tip Many credit cards have different rates for different balances. The purchase APR is applicable to items you purchase using the card, while separate APRs are applied to balance transfers and cash advances. In the event of this, the card issuer calculates different daily averages of balances for purchases advance, transfers and purchases using the specific APRs to each. Learn more: The number of days in the cycle Every cycle of billing for credit cards covers about one month’s worth of time, however the billing cycles don’t align precisely with calendar months. They usually begin in one month and end at the end of the next. The billing cycle is closed on or around the same day of the month. The amount of days within the billing period varies from 28 to 31 days. There are a few reasons to this: Different months have different numbers of days. Some issuers might not allow statements to be closed on weekends or holidays. Federal regulations require for your due date to fall on the same day of each month and you should have at minimum 21 days between when the statement expires and the date you have to pay. Our credit card interest calculator lets you select a range of days ranging from 28 to 31. If you’re not sure which day to choose, 30 days is an acceptable default. Or you can choose as many days in the month of calendar when the cycle started. (For example, if a cycle began in April and ended in May, choose 30 since April has thirty days.) What’s next? Appendix: How the math is used in our examples How math works: 30-day cycle, starting with a balance of $100. No purchases or payments (30 days of $100) 30 cents = $3,000 Divided by 30 days in a cycle $3000 x 30 = $100 $45 on day 11. (10 Days at $100, then 20 days at $145) (10 100 x $100) + (20 145) = $1,900 + $2,900 = $3900 Divided by 30 days of cycle 3900/30 = $130 $45 on day 11 and $60 payment on day 21 (10 days at $100, 10 days with $145, then the 10th day at $85) (10 100 x $100) + (10 $145) + (10 $85) = $1,000 + $1,450 + $850 = $3,300 Divided by 30 days of cycle 3300 x 30 = $110 About The author’s name: Paul Soucy is the lead credit cards editor of NerdWallet. He has worked for USA Today and the Des Moines Register and has an MBA. On a similar note… find the right credit card that is suitable for you. If you’re looking to pay lower interest or earn higher rewards, the right card’s out there. Simply answer a few concerns and we’ll refine your search for the right card for. 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