# Credit Card Interest Calculator Monthly Payment – How to Calculate Credit Card Monthly Interest

The credit card interest calculator helps you figure out how much of your monthly payment is applied to the principal and how much is the interest. It also informs you how many months you have until the card is paid off and your total interest cost until the payoff.

This interest rate will be printed on your monthly statement and the rates will be given to you as an APR.

## Credit Card Interest Calculator Monthly Payment

Credit card interest compounds daily. This implies that the interest charged for day 1 of the period will be included in the calculation for day 2, and the interest from day 2 will be included in the calculation for day 3, and so on. So, your minimum payment every month will encompass all the interest that has accrued, the fees you have incurred and a small percentage of the principal balance.

### How to Calculate Credit Card Monthly Interest

To get your credit card’s monthly interest, you will have to divide your card’s APR BY 365 to know the daily periodic rate. After this, you multiply it by the card’s average daily balance so you can get the interest accumulated in one day. Then you multiply by the number of days in the billing period to get your monthly interest.

However, your credit card has a grace period, so if you pay your bill in full by the due date every month, you will owe no interest on your card. Also, your card issuer will calculate your interest on your monthly statement, so you may not need to calculate it. Anyway, follow the steps below to know how to calculate your monthly interest on your credit card.

• You have to divide your APR by 365, which is the number of days in a year to get your card’s daily periodic date.
• Then you add up your card balance on each of the billing periods and divide it by the number of days in the billing period.
• After this, you multiply the periodic date and the average daily balance. The result you get is the amount of interest you get in one day.
• Next, you multiply the daily interest by the number of days in the billing cycle to get the monthly interest.

To get your credit card monthly interest, you will need to know what your credit card balance is every day. Also, know that you only pay interest on balances that you carry from your billing period to your billing period. So, you are advised to always pay in full before your due date.

### How To Use the Credit Card Calculator to Calculate Your Monthly Interest

The steps below will aid you in using the calculator to calculate your monthly score.

• Open a credit card calculator.
• Check for your current balance on your credit card statement and fill it in the first space. Note that you are not to add a dollar sign or commas, but you can include a decimal.
• Then you enter your current interest rate charged by your credit card. Your interest rate will be displayed on your statement as APR. There is a possibility that it may have changed since you first signed up for the card. Hence you need to check your recent statement to get your current interest rate. When entering the percentage interest rate, you do not need to add a percentage sign.
• After this, you enter the number of days in your billing cycle. You will find this in your statement.
• Then tap the “calculate” button and you will find the interest amount for the month.