Enter the balance you carry and your card’s annual rate (it’s on your statement). You will see how much it costs you per month and per day.
The preloaded values are an example: replace them with your own figures.
Estimated interest for the period
With these figures, if you carry $1.500,00 on your card for 30 days, you would pay about $20,34 in interest: roughly $0.68 per day.
If the debt sits untouched for 12 months
Illustration: unpaid interest is added to the balance and generates new interest.
| Month | Interest for the month | Accumulated interest | Total debt |
|---|---|---|---|
| Month 1 | $20,63 | $20,63 | $1.520,63 |
| Month 2 | $20,91 | $41,53 | $1.541,53 |
| Month 3 | $21,20 | $62,73 | $1.562,73 |
| Month 4 | $21,49 | $84,22 | $1.584,22 |
| Month 5 | $21,78 | $106,00 | $1.606,00 |
| Month 6 | $22,08 | $128,08 | $1.628,08 |
| Month 7 | $22,39 | $150,47 | $1.650,47 |
| Month 8 | $22,69 | $173,16 | $1.673,16 |
| Month 9 | $23,01 | $196,17 | $1.696,17 |
| Month 10 | $23,32 | $219,49 | $1.719,49 |
| Month 11 | $23,64 | $243,13 | $1.743,13 |
| Month 12 | $23,97 | $267,10 | $1.767,10 |
Results are for reference only and are not actual figures. Values depend on the country, the financial institution, taxes and current laws, and must be validated with an authorized financial institution. Banco.guru is an educational guide to what can be achieved; it does not offer products or personalized financial advice.
Tips for using this result
- Paying the full balance before the due date usually avoids interest on purchases (grace period).
- Cash advances usually accrue interest from day one.
- Check the interest rate and total cost on your statement: they vary by country and card.
- If you carry a balance, compare a plan with the credit card payoff simulator.
How is credit card interest calculated?
When you don’t pay your full statement balance, the outstanding balance is carried and accrues interest. The most common method uses a daily rate (annual rate ÷ 365 or 360, depending on the institution) applied to the average daily balance for the period. This calculator uses a simple approximation: interest ≈ balance × (annual rate ÷ 365) × days.
Why credit card debt grows fast
If you don’t pay, the month’s interest is added to the balance and the next month you are charged interest on that interest. The tool’s 12-month table shows this effect. Late fees, charges and taxes may be added depending on the country.
Where to find your rate
Your statement usually shows the interest rate (nominal or effective), the statement closing date, the payment due date, the minimum payment and the full payment. If you don’t know how to read it, use our visual account statement dictionary. Remember that rates vary by country, institution and type of card, and that many countries have maximum rates set by the regulator.
How to pay less interest
- Pay the full statement balance before the due date whenever you can.
- If you can’t, pay as much as possible: every payment reduces the balance interest is calculated on.
- Avoid cash advances and unnecessary deferred installments.
- Know your statement closing date and payment due date to plan large purchases.
Frequently asked questions
How much interest does a credit card charge?
It depends on the country, the institution and the type of card. The rate appears on your statement and in the contract. This calculator helps you turn that rate into money.
If I pay the minimum, am I charged interest?
Yes. The balance you don’t pay is carried and accrues interest. In addition, in many cases you lose the grace period on new purchases.
Is the card’s rate monthly or annual?
Institutions usually disclose the annual rate (nominal or effective) and sometimes the monthly rate. This calculator asks for the annual rate.
Why is my real interest different?
Because the official calculation uses the average daily balance, exact dates and may include taxes or charges. The result here is an estimate.
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