Calculate the credit card interest you may owe for a given balance and interest rate. Choose your monthly payment and learn the payoff time, or enter the payoff time to calculate the monthly payment amount.
Every month, your credit card company adds your current balance to any interest you owe for your monthly statement total. That month's minimum payment is a percentage of that total. There is usually a dollar amount for your minimum monthly payment, and it may be written like, "$35 or 2% of your balance plus fees, whichever is greater." Each credit card issuer calculates your minimum monthly payment differently.
How exactly credit card interest is calculated varies by issuer. But it’s generally calculated using your average daily balance. Issuers divide your APR by 365 to get the daily interest rate, then multiply it by your balance and the number of days in the billing cycle to determine the interest charged.
Believe it or not, an interest rate calculator and credit card payoff calculator are actually two different versions of the same thing. If you have your interest rate and you know what your monthly payment will be, the calculator will help you determine how long it will take to pay off your balance and how much you’ll pay in interest each month.
It’s helpful to pay more than the minimum payment to work towards being debt-free. To do this, we recommend coming up with a budget plan (and sticking with it) so you can better understand how you’re spending your money, and how you can cut costs.
While carrying a balance doesn’t affect your credit score, your credit utilization does. This is how much of your available credit you have spent (and owe back to your lender). A high utilization could be seen as a high risk for potential lenders, while a low utilization shows them you’re able to pay off your balances in a timely manner.
