Credit Card Interest Calculator

A credit card interest calculator helps you estimate how much interest you'll pay on your credit card balance and how long it will take to pay off your debt based on your monthly payments.

Credit card interest is typically calculated using the Average Daily Balance method. Your APR is divided by 365 to get a daily rate, which is then multiplied by your average daily balance and the number of days in your billing cycle.

APR (Annual Percentage Rate) includes both the interest rate and any additional fees, giving you a more complete picture of the cost of borrowing. For credit cards, APR and interest rate are often the same.

You can reduce interest by paying more than the minimum payment, paying off your balance in full each month, transferring to a lower APR card, or negotiating with your card issuer for a lower rate.

Making only minimum payments will significantly extend your payoff time and increase the total interest paid. It can take decades to pay off a balance this way.

Minimum payments are typically calculated as a percentage of your balance (usually 1-3%) plus any fees, or a fixed dollar amount, whichever is greater.

Yes, credit cards don't have prepayment penalties. Paying off your balance early will save you money on interest charges.

A good APR depends on your credit score and current market rates. Generally, anything below 15% is considered good, while rates above 25% are considered high.