See exactly how much interest a balance will cost you in one billing cycle — then learn, in plain English, how credit card interest actually works.
The whole thing in five short ideas.
If you pay your full statement balance by the due date every month, you never pay a cent of interest on purchases — no matter how high your APR is. The rate only matters if you carry a balance from one month to the next. So the whole game is: pay it off in full whenever you can.
Even though the rate is quoted per year, the card charges you a little bit every single day you carry a balance. Each day it takes your balance and multiplies it by a tiny daily rate, then adds that to what you owe.
Your APR is the yearly rate. To get the daily rate, divide it by 365.
Not your end-of-month number. The issuer looks at your balance on every day of the cycle, adds them up, and divides by the number of days.
Your minimum is built to cover the interest plus a tiny slice of principal. Pay only the minimum and a balance can take years to clear and cost more in interest than the original purchase. Always pay more than the minimum when you can.
MyCreditPerks · This calculator is for estimates and education. Your card's exact interest depends on your issuer's method, your true average daily balance, and any fees. Not financial advice.