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 at last the time or cost prompts. The curiosity owed will mechanically seem. For more information, hold studying beneath the calculator.
The 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 share 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 cost or by a variety 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?
If you happen to 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 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 each day and charged month-to-month.
To search 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 fee is 0.0548%. To calculate month-to-month curiosity prices, bank card multiply a cardholder’s common each day stability throughout every billing cycle (a hard and fast interval of 28 to 31 days) by the each day fee.
Let’s say you’re carrying a stability of $1,000 on a card with a 20% APR. At a each day rate of interest of 0.0548%, the each day cost shall 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.
Notice 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’re 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.
The way to keep away from paying bank card curiosity
One of the best 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. If you happen to can’t, make at the very 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 fee (for instance, $10) or a share of your excellent stability (sometimes 3%), whichever is greater. (Notice: In Quebec, the bank card minimal cost is 4.5%. As of Aug. 1, 2025, it will likely be 5%.)
If you happen to don’t make the minimal cost by the due date, you can be charged a late payment starting from $25 to $40, which can seem in your subsequent assertion. If you happen to’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 may additionally elevate your rate of interest. If you happen to’re receiving a promotional rate of interest, you could lose it and need to pay the common APR. Ultimately, the cardboard supplier might even cancel your bank card and switch your debt to a debt assortment company.
Featured bank cards
Get $75 Present Card Provide
Finest for journey card
Scotiabank Passport™ Visa Infinite Card
Earn factors on each buy, pay no FX charges, and obtain complimentary airport lounge entry (with 6 annual passes).
Provide ends
Could 01, 2025
GO TO SITE
Curiosity Charges:
20.99% buy, 22.99% money advance, 22.99% stability switch
Welcome supply:
$300 worth
Earn as much as $1,300 in worth within the first 12 months, together with as much as 40,000 bonus Scene+ factors. To qualify, apply by July 1, 2025.
featured
Finest for money again
SimplyCash Most well-liked Card from American Categorical
Earn 4% money again on groceries and gasoline. Plus get a flat 2% on all different on a regular basis purchases.
GO TO SITE
Curiosity Charges:
21.99% buy, 21.99% money advance, N/A stability switch
Welcome supply:
$250 worth
Earn a bonus 10% money again on all purchases to your first 3 months (as much as $2,000 in purchases). Plus, earn a $50 assertion credit score while you make a purchase order in month 13. This might add as much as $250 in bonus worth in your first 13 months.
featured
Finest low APR card
MBNA True Line Mastercard bank card
A great possibility for cardholders seeking to handle debt, the cardboard’s low 12.99% APR is nearly half the standard rate of interest discovered on most playing cards.
GO TO SITE
Curiosity Charges:
12.99% buy, 24.99% money advance, 17.99% stability switch
The way to scale back bank card debt
If you happen to carry a stability, these 5 methods can assist you pay much less curiosity on bank card debt.
