Credit card APR is the interest rate you're charged each month on any unpaid card balance. Learn how to calculate your daily and monthly APR.
Our guide to calculating credit card interest shows you the impact of interest on your debt so you can manage and plan your payments more effectively.
If you carry balances on your credit card from month to month, your credit card purchase APR (annual percentage rate) determines how much you must pay in interest. A higher purchase APR means you will owe more in interest if you carry a balance, while a lower purchase APR means you will owe less. You can avoid credit card interest altogether by paying your statement in full each month before the grace period ends, but keep in mind that this can vary depending on whether you have a personal or business credit card. But if you do carry a balance ...
Calculate how long it will take to pay off your credit card with the Discover Credit Card Interest Calculator.
Credit cards may offer convenience and flexibility in managing your finances, but to maintain good credit, it’s important to understand what to expect on your credit card bill each month. A crucial element you’ll find on your bill is the minimum credit card payment. A minimum payment is the bare minimum you’re obligated to pay each billing cycle to avoid late fees and penalties . Paying this amount on time each month keeps your account in good standing. The minimum payment is usually a percentage of your total balance, but not always. ...
Advertiser disclosure How Credit Card Issuers Calculate Minimum Payments Your minimum is usually based on a percentage of your balance — a small percentage. If you want to get out of debt...
Use your credit card's APR to estimate how much interest you'll pay each month. But if you pay your balance during your grace period, you can avoid interest entirely.
Learn how to use your APR to calculate interest charges on credit cards so you can manage debt more effectively.
Credit cards charge interest, known as APR, if you carry a balance past your due date. Here's a step-by-step guide on how to calculate your credit card interest.
What you’ll learn: ; APRs may be higher than interest rates because they include the interest rate plus other costs, like lender fees. ; When it comes to credit cards, the APR and interest rate are typically the same. ; Some creditors offer temporary promotional rates, such as 0% introductory APRs. Promotional credit card APRs have to last at least six months, but some may last longer.