Calculate how much interest accrues on your credit card balance over time.
Total Interest Paid
$1,036.66
Final Statement Balance
$6,036.66
Calculated Period
12 months
Credit card interest is typically calculated daily based on your Daily Balance and the Daily Periodic Rate (APR / 365). In this calculator, monthly compounding is applied: Final Balance = P * (1 + r)^n, where P is the outstanding balance, r is the monthly rate (APR / 12), and n is the period in months. The accrued interest is the difference between the final balance and the initial balance.
1. Enter the current outstanding Credit Card Balance. 2. Input the card's Annual Percentage Rate (APR). 3. Specify the time horizon in months that the balance remains unpaid. 4. View the final balance and total interest incurred.
Total Interest Paid shows the total cost of carrying the credit card debt over the specified period. Final Statement Balance is the sum of your initial debt plus the accumulated interest charges.
FAQ
You can avoid interest entirely by paying your statement balance in full every month before the due date. This utilizes the grace period provided by most credit card issuers.
APR stands for Annual Percentage Rate. It is the yearly rate of interest. The monthly interest rate is simply the APR divided by 12, which is applied to your balance each billing cycle.
Categories · Credit Cards
Find the monthly payment needed to pay off your credit card by a target date.
Calculate monthly payments, total interest, and amortization schedule for any loan.
Find out how long it will take to pay off your loan based on your monthly payment.