Fill out the stability and rate of interest prompts, choose the way you need to calculate the debt curiosity (by month-to-month cost of variety of months), and eventually the time or cost prompts. The curiosity owed will routinely seem. For more information, preserve studying beneath the calculator.
Methods 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 presently owe in your bank card.
- Rate of interest: The annual share price (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 quite a lot of 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 stability.”
How is bank card curiosity calculated?
Should you don’t repay your full stability 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 share price (APR), starting from 12% to round 20% (typically much more) for purchases. The APR is an annual price, 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 price is 0.0548%. To calculate month-to-month curiosity costs, 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 price.
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 can 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.
Observe 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 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.
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. Should you can’t, make at the least 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 price (for instance, $10) or a share of your excellent stability (sometimes 3%), whichever is larger. (Observe: In Quebec, the bank card minimal cost is 4.5%. As of Aug. 1, 2025, it is going to be 5%.)
Should you don’t make the minimal cost by the due date, you can be charged a late payment starting from $25 to $40, which is able to seem in your subsequent assertion. Should you’re repeatedly late or cease making funds, you additionally danger 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 might also elevate your rate of interest. Should you’re receiving a promotional rate of interest, chances are you’ll 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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Methods to cut back bank card debt
Should you carry a stability, these 5 methods will help you pay much less curiosity on bank card debt.
