Credit Card Interest Calculator

How Credit Card Interest is Calculated

Credit card interest is calculated based on your Average Daily Balance (ADB) and the applicable Annual Percentage Rate (APR) set by your bank. Interest is charged only if you do not pay the full outstanding balance within the interest-free period.

The formula for calculating monthly credit card interest is:

Daily Interest Rate = (APR ÷ 100)/365
Interest = Average Daily Balance ×
           Daily Interest Rate ×
           Number of Days
  

Steps to calculate:

1. Identify your credit card’s APR (e.g., 36% p.a.).
2. Divide the APR by 365 to get the daily interest rate.
3. Calculate the Average Daily Balance during the billing cycle.
4. Multiply the ADB by the daily rate and the number of days to get the interest amount.

Example: If your ADB is ₹20,000, APR is 36%, and your billing cycle is 30 days:

Daily Rate = 36 ÷ 100 ÷ 365
           = 0.0009863
Interest = ₹20,000 × 0.0009863 × 30
         = ₹591.78
  

Our Credit Card Interest Calculator uses this exact formula to instantly show you how much interest you will pay if you carry forward a balance.

How Credit Card Interest Works?

If you don’t pay your credit card bill in full by the due date, the issuer starts charging interest on the outstanding balance. This is calculated daily based on your annual interest rate.

About Credit Card Interest Calculator

A Credit Card Interest Calculator is an easy-to-use online tool that helps you accurately estimate the interest you will pay if you carry a balance on your credit card beyond the interest-free period. It works on the standard Average Daily Balance (ADB) method combined with your card’s Annual Percentage Rate (APR).

With this calculator, you simply enter your outstanding balance, the bank’s APR, and the number of days in your billing cycle. The tool instantly shows you the exact interest amount so you can plan your repayments better and avoid unnecessary charges.

Whether you are using an Indian credit card or an international one, our calculator is designed to work with any credit card interest rate structure, helping you understand your monthly cost of borrowing and make informed financial decisions.

Features of the Credit Card Interest Calculator

• Instant Interest Calculation – Enter your outstanding balance, Annual Percentage Rate (APR), and billing cycle to get instant credit card interest amount in seconds.
• Supports All Credit Cards – Works for any Indian credit card or international credit card, regardless of bank or provider.
• Average Daily Balance Method – Uses the most widely applied calculation method for credit card interest in India and abroad.
• Customizable Inputs – Adjust your APR, billing cycle days, and balance to see how different scenarios affect your monthly interest.
• Mobile-Friendly Design – Access the credit card interest calculator online on any device, anywhere.
• Helps Avoid Extra Charges – Understand your interest-free period and plan repayments to avoid late payment fees and high interest.