Fill in the balance and interest rate tips, select how you want to calculate the debt interest (monthly paid monthly), and finally the time or payment tips. The debt will automatically appear. For more information, continue reading below the calculator.
How to use the Credit Card Interest Calculator
Here is what each part of the calculator means:
- Current credit card balance: How much money do you owe on your credit card at the moment.
- interest rate: The annual percentage (APR) collected by your credit card, usually 12% to 20%.
- Calculate your interests: You can calculate the amount of interest by paying monthly or months. For the first option, enter the payment amount next to “Moonly Payment”. Or click on the second option and enter the months next to “Time to pay off your balance”.
How to calculate credit card interest?
If you do not repay the full balance before the payment due date shown on your monthly credit card statement, you will pay interest on your owed payment. The annual percentage (APR) of each credit card ranges from 12% to 20% (and sometimes more). APR is the annual interest rate, but credit card interest is calculated daily and charged monthly fees.
To find out the daily interest rate, divide the APR by 365 (the number of days in the year). For example, for cards with an APR of 20%, the daily rate is 0.0548%. To calculate monthly interest charges, the credit card multiplies the average daily balance of the cardholder for each billing cycle (fixed term of 28 to 31 days) by the daily interest rate.
Assume your balance is $1,000 on the card with APR 20%. The daily interest rate is 0.0548%, and the daily fee is about $0.55. Multiply it by the number of days in the billing cycle to see your monthly interest. In 30 days, the interest will total up to $16.50.
Please note that credit card providers charge higher rates for cash upgrades (borrowing cash from credit cards) and cash-based transactions, with APRs ranging from 23% to 28%. Also, interest begins to accumulate from the date you take the cash – there is no grace period, like you get when you purchase it on your card (usually 21 days from the date of issuing a credit card statement). Borrowing cash with a credit card is very expensive, so it is limited to an emergency only.
How to avoid paying credit card interest
The best way to avoid paying credit card interest is not only to repay the “minimum payment” displayed on the credit card statement, but also to repay the full amount you borrowed on time. Yes, every month. If not, make minimum payments at least before the due date to avoid late fees and any payments for credit history. The minimum payment is a flat rate (e.g. $10) or a percentage of your outstanding balance (usually 3%), whichever is higher. (Note: In Quebec, the minimum payment for credit cards is 4.5%. As of August 1, 2025, it will be 5%.)
if you No Pay the minimum payment before the due date and you will charge a late fee ranging from $25 to $40, which will appear in your next statement. If you are repeatedly late or stop payments, you may also be able to damage your credit score, which may make it difficult for you to get affordable credit in the future. Your credit card provider may also increase your interest rates. If you receive promotional rates, you may lose and have to pay a regular APR. Eventually, the card provider can even cancel your credit card and transfer your debt to the debt collection company.
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How to reduce credit card debt
If you bear the balance, these five strategies can help you reduce interest on your credit card debt.
