How is credit card interest calculated?

The amount of interest you pay is calculated based on your annual interest rate, balance, and how much you pay each month. Fortunately, this Credit Card Interest Calculator makes the math easy. Simply input the variables, click the “Calculate Credit Card Interest” button, and you'll learn not only the total amount of interest you'll pay, but also:

How much is interest on a credit card?

If the bank had an 18% interest charge just once at the end of the year, you’d pay $180. But since your interest compounds, you’d actually be the hook for something closer to $195. How does credit card interest work? Credit card issuers charge interest on purchases only if you carry a balance from one month to the next.

How do I find my credit card's interest rate?

You can find your credit card’s interest rate in the terms and conditions you’ll receive once you’re approved for a new card, on your monthly statement credit or by calling the number on the back of your card and asking. Most, but not all, credit cards charge a variable APR range based on an index rate.

How many days should a credit card interest calculator be?

Our credit card interest calculator lets you choose a number of days from 28 to 31. If you aren't sure, 30 days is a good default; or you can use the number of days in the calendar month in which the cycle began. (For example, if the cycle began in April and ended in May, go with 30 because April has 30 days.)