How Credit Card Interest Works

APR (Annual Percentage Rate) is the yearly interest rate charged on outstanding balances.

Daily Rate = APR / 365
Minimising Interest
Pay in full: Avoid interest entirely

Pay more than minimum: Significantly reduces total interest

Balance transfer: Move to 0% offers when available

Prioritise high-APR cards: Snowball method or avalanche
Important Notes

This calculator assumes interest is calculated monthly on the remaining balance. Actual calculations may vary by card issuer.