Credit Card Interest Calculator
This calculator shows you exactly how much interest accrues on your credit card balance when no payments are made. Choose a one-month or one-year period to understand the cost of carrying a balance — it's often significantly more than people realize.
Why Use This Calculator?
Credit cards charge compound interest daily. Even one month of carrying a balance can cost you significantly. Use this calculator to see exactly how much interest you'll owe if you don't pay off your balance — it's often more than people expect.
How Credit Card Interest Works
Most credit cards compound interest daily based on your Annual Percentage Rate (APR). For a simplified but accurate monthly model, we divide your APR by 12 to get the monthly rate, then apply that rate to your balance each month. This gives a close approximation of what you'll actually see on your statement.
Why This Calculator Exists
Many people don't realize that credit card interest is not a one-time fee — it compounds over time. Carrying a $3,000 balance at 20% APR costs roughly $50 in interest in just one month, and over $600 in a year. Understanding these numbers is the first step toward making a plan to pay down debt.
What to Do If You're Carrying a Balance
- Stop using the card for new purchases until the balance is zero.
- Make a budget and allocate as much as you can toward debt repayment.
- Explore 0% balance transfer offers (compare transfer fees first).
- Contact your card issuer about hardship programs if you're struggling.