Credit Card Interest Calculator
Credit card interest builds up daily, and it is much higher than most loans. Enter your balance and APR to see what carrying it costs.
Results
Interest for the period
₹2,958.90
- Interest per day
- ₹98.63
- Interest if unpaid for a year
- ₹42,576
- Effective yearly rate
- 42.58%
- With monthly compounding
- Estimated minimum payment
- ₹7,958.90
A balance of ₹1,00,000.00 at 36% APR costs about ₹2,958.90 in interest over 30 days. Left unpaid for a year with monthly compounding, the interest would be ₹42,576.09.
Show the calculation steps
- Daily rate = APR ÷ 365 = 0.09863% a day.
- Interest for 30 days = balance × daily rate × days = ₹1,00,000.00 × 0.0009863 × 30 = ₹2,958.90.
- Effective yearly rate with monthly compounding = (1 + APR ÷ 12)^12 − 1 = 42.58%.
- Typical minimum payment = the larger of ₹200.00 or 5% of the balance plus interest = ₹7,958.90.
- Card issuers may compute interest on the average daily balance and add fees or GST. Check your statement for the exact method. Paying the full balance by the due date usually avoids interest on purchases.
How card interest is charged
Most issuers apply your annual rate divided by 365 to the balance each day. If you pay the full statement balance by the due date, purchases usually carry no interest. Carry a balance and interest starts to accrue, and unpaid interest is added to the balance.
Why the effective rate is higher
Because interest is added to the balance each month, a nominal 36% APR is effectively about 42.6% a year. This is why paying only the minimum keeps you in debt for years.
Formula
Daily rate = APR ÷ 365
Interest = Balance × daily rate × days
Effective yearly rate = (1 + APR ÷ 12)^12 − 1
Where:
- APR
- = Annual percentage rate on the card
- days
- = Days the balance is carried
Example calculation
₹1,00,000 balance at 36% APR for 30 days
Inputs
- Outstanding Balance
- ₹1,00,000
- Annual Percentage Rate (APR)
- 36 %
- Days Carried
- 30 days
- Minimum Payment Rule
- 5 % of balance
- Minimum Payment Floor
- ₹200
Result
- Interest for the period
- ₹2,958.90
- Interest per day
- ₹98.63
- Interest if unpaid for a year
- ₹42,576
- Effective yearly rate
- 42.58%
- Estimated minimum payment
- ₹7,958.90
Step-by-step
- Daily rate = APR ÷ 365 = 0.09863% a day.
- Interest for 30 days = balance × daily rate × days = ₹1,00,000.00 × 0.0009863 × 30 = ₹2,958.90.
- Effective yearly rate with monthly compounding = (1 + APR ÷ 12)^12 − 1 = 42.58%.
- Typical minimum payment = the larger of ₹200.00 or 5% of the balance plus interest = ₹7,958.90.
Important notes
- Results are estimates based on the values you enter. They assume the rates stay constant and exclude taxes and fees unless stated.
Disclaimer: This calculator provides estimates for informational purposes and should not be considered financial advice. Actual figures from lenders, banks and investment products can differ because of fees, taxes, rounding rules and changing rates. Consult a qualified professional before making financial decisions.
Frequently asked questions
How is credit card interest calculated?
Daily: balance × APR ÷ 365 for each day the balance is carried, plus compounding as unpaid interest is added.
Can I avoid credit card interest?
Usually by paying the full statement balance by the due date. Cash withdrawals typically start accruing interest immediately.
Why is the effective rate higher than the APR?
Interest is added to the balance monthly, so you pay interest on interest.
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