Calculate the actual interest charge for one billing cycle based on your average daily balance and APR, the same method most credit card issuers use.
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Most credit card issuers use the average daily balance method: they track your balance every day of the billing cycle, average it, then apply a daily periodic rate (your APR divided by 365) multiplied by the number of days in the cycle. This is different from a simple one-time monthly interest calculation.
This calculator answers 'how much interest does one billing cycle actually charge' using the average daily balance method. If you instead want to know how long it will take to pay off a balance completely and the total interest over that whole payoff period, use our Credit Card Payoff Calculator instead.
It's the average of your account balance calculated at the end of each day during the billing cycle, accounting for any payments or purchases made during that period. Your statement typically shows this figure directly.
The projected annual figure assumes the same average daily balance stays constant for a full year, in reality, your balance and interest charges will vary from cycle to cycle based on payments and new purchases.
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