Credit Card Interest Calculator
Estimate one month of credit-card interest from balance and annual percentage rate.
Result
Planning estimate only
This uses annual percentage rate divided by 12 as a simple monthly estimate. Actual card issuers often use average daily balance and daily periodic rates, so statement interest may differ.
Not financial or lending advice. Check your card agreement and statement for actual interest calculations.
How it works
Credit cards show an annual percentage rate, which is the yearly interest rate. Most cards charge interest monthly, so the calculator divides the yearly rate by 12 and multiplies it by your balance to estimate one month of interest.
Worked example
Example: You carry a $5,000 balance at a 24.99 percent annual percentage rate.
Monthly rate: 24.99 divided by 12 is about 2.083 percent.
One month of interest: $5,000 times 0.020825 is about $104.13.
Twelve months at the same balance: about $1,249.50.
Paying more than the interest each month is the only way the balance goes down.
Common questions
Why is my real interest charge a little different?
Most cards use your average daily balance and the number of days in the billing cycle. This is a simple monthly estimate.
How do I avoid credit card interest?
Pay the full statement balance by the due date each month. Most cards then charge no interest on purchases.
How long will it take to pay off my card?
Use the debt payoff calculator to see payoff time and total interest.