Credit Card Interest Calculator

Calculate the credit card interest you'll owe for a given balance and interest rate. Choose your monthly payment and learn the payoff time, or enter the payoff time to calculate the monthly payment amount.

Choose how you'd like to calculate:

By monthly payment

By months to pay off

$ Balance

Interest Rate (APR) %

$ Monthly Payment

Months to pay off

0_mo.

Monthly payment

^$0.00

Total Interest Paid:

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^$0.00

Total Interest Paid:

Interest: $––

Principal: $––

This calculator is just an educational tool and your results may vary depending on your situation.

Want to save on interest? You could be pre-approved for a low intro APR Discover^{^®} Card.

Here’s what would happen if you adjusted the monthly payments:

How the calculator works

This calculator factors in a balance, interest rate (APR) and monthly payment amount to estimate a payoff period and the total interest paid.

Our Credit Card Payoff Calculator assumes the following:

Monthly payment is at least the Minimum Payment Due, which is calculated as the higher of $35 or 2% of the balance
Monthly payment is made at the beginning of the billing cycle
There are no other existing balances or new transactions made on the account
Interest compounds daily (and daily balance method is used)
There is a fixed APR
Payment stays consistent during entire pay-down period, even if the Minimum Payment Due decreases
Your interest charges will vary
For specific advice about your unique circumstances, you may wish to consult a qualified professional

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How can I pay less credit card interest?

Paying off your balance in full and on time with every monthly statement lets you avoid credit card interest charges on your purchases

When you pay off your credit card balance in full and on time, you don't accumulate interest charges on your purchases for that billing cycle. So if you do that every month, you could avoid paying interest entirely.

Pay more than your minimum payment due

Every month, your credit card statement shows you a minimum amount due that you can pay to avoid penalty fees. But remember that any unpaid balance will continue to accrue interest charges—so you’ll pay less in interest if you pay off the balance faster.

Transfer your balance for a lower promotional interest rate

Many credit cards offer a balance transfer at a lower promotional interest rate. By transferring balances at higher interest rates to another credit card account with a low promotional APR, you can save on interest during the promotional period.

Find a credit card with a low introductory interest rate

Look for a credit card company that has cards that offer a low introductory interest rates on purchases, balance transfers, or both. This is a good way to save on interest during the promotional period, especially if you plan to make a large purchase or transfer higher-rate debt. Remember, after the promotional period ends, your standard purchase APR will apply.

Common questions about credit card interest

Every month, your credit card company adds your current balance to any interest you owe for your monthly statement total. That month's minimum payment is a percentage of that total. There is usually a dollar amount for your minimum monthly payment, and it may be written like, "$35 or 2% of your balance plus fees, whichever is greater." Each credit card issuer calculates your minimum monthly payment differently. Consult your Discover statement and the terms of your account for information on how your Discover card minimum monthly payment is calculated.

First take your APR (Annual Percentage Rate, which is your interest rate) and divide it by 365 (the days in the year) to get your daily interest rate. (Note that there may be different APRs that apply to different transactions on the same bill. A cash advance interest rate may differ from your purchase rate, there may be promotional interest rates on certain purchases.) Every day, your credit card issuer will multiply the daily interest rate for each transaction that hasn't been paid off by the dollar amount of the transaction. That's how much interest you'll be charged for that day. This interest gets compounded, which means it's added to what you owe. Each day, you'll have a new daily balance, and the credit card issuer will calculate the interest on this amount. The daily interest charges are all added up to determine your monthly interest payment, which keeps compounding until you pay your bill in full.

It’s much easier to use a credit card interest calculator like the one on this page, but if you want to do it by hand, here’s what you need to calculate:

Your daily balance (each day’s transactions plus interest)

Monthly balance (total of your daily balances for the month)

Subtract your payments from your monthly balance, then calculate the new daily balances. Do this until your total is $0. Then count how many days that took.

Believe it or not, an interest rate calculator and credit card payoff calculator are actually two different versions of the same thing. If you have your interest rate and you know what your monthly payment will be, the calculator will help you determine how long it will take to pay off your balance and how much you’ll pay in interest each month.

It’s helpful to pay more than the minimum payment to work towards being debt-free. To do this, we recommend coming up with a budget plan (and sticking with it) so you can better understand how you're spending your money, and how you can cut costs. Even an extra $5 or $10 a month can help you pay less in interest and may make more of an impact than you might think.

While carrying a balance doesn't affect your credit score, your credit utilization does. This is how much of your available credit you have spent (and owe back to your lender). A high utilization could be seen as a high risk for potential lenders, while a low utilization shows them you're able to pay off your balances in a timely manner. Keep in mind, credit utilization typically makes up almost a third of how your credit score is calculated.

Credit Card Interest Calculator

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How the calculator works

How can I pay less credit card interest?

Read more about interest payments and credit card debt

Common questions about credit card interest

How is the minimum payment on a credit card calculated?

How do you calculate credit card interest?

How do you calculate your credit card payoff date?

What’s the difference between an interest rate caclulator and a credit card payoff calculator?

How do I pay off my credit card?

Does carrying a balance affect my credit card?