DEBT MANAGEMENT CHANNEL
Credit Card Interest Calculator
Calculate the monthly interest penalty generated by carrying credit card balances.
Calculator Variables
Calculation Overview
Calculate the monthly interest charged on your credit cards and see the high cost of only paying minimums.
Mathematical Model & Formula
Monthly Interest = (Balance * APR %) / 12
Applies the daily periodic interest calculation model representing revolving bank fees.
Variables Defined:
Worked Example Scenario
Scenario: Carrying $5,000 balance at 22% APR.
- Monthly interest = ($5,000 * 0.22) / 12
Result: $91.67 monthly interest cost.
Frequently Asked Questions
How can I avoid credit card interest?
Always pay the "Statement Balance" in full by the due date every month to trigger your interest grace period.