Credit card interest calculator
Many card issuers charge interest every day: your APR divided by 365, applied to your average daily balance.
Reviewed by Alex Thomas · Updated Nov 5, 2026
At 22.99% APR, a $2,000 balance costs about $1.26 a day, or $37.79 over a 30-day billing cycle.
Interest this cycle
$37.79
Daily periodic rate0.063%
Interest per day$1.26
Over a year at this balance$459.80
Pay your full statement balance by the due date and most cards charge no interest on purchases. Carry a balance and you lose that grace period: new purchases start charging interest the day you make them.
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Questions
How is credit card interest calculated?
Many issuers divide the APR by 365 to get a daily periodic rate and charge it on your average daily balance. Your agreement says which method your card uses.
What is the daily periodic rate?
It's the APR divided by the days in a year. A 22.99% APR is about 0.063% a day.
Why does paying early lower my interest?
Interest accrues daily on the balance, so paying part of it earlier in the cycle lowers the average daily balance, and the interest with it.
Related guides and answers
- How does a credit card work?A credit card lets you borrow up to a set credit limit to pay for things. Each month you get a statement with a minimum payment and a due date. Pay the full balance by the due date and most cards charge no interest on purchases. Pay less and the rest accrues interest at the card's APR.
- Can I get a credit card without a bank account?Getting a credit card without a bank account is hard. Capital One lists checking or savings account information among what it requires to apply, and its secured card deposit must come from a bank account. Paying a card without one is easier. Capital One takes money orders by mail and may take cash at its locations.
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