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how to calculate daily interest on credit card. Interest Rate 365 gives the daily interest rate also referred as Daily Periodic Rate you pay on the Credit Card Balance. You can calculate your daily period rate in three steps as follows.
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If you want to crunch the numbers yourself first take your APR Annual Percentage Rate and divide it by 365 the days in the year to get your daily interest rate. For most credit cards the average billing cycle is about 30 days. To do so divide your APR by 365 the number of days in a year.
To calculate your DPR divide your annual APR by 365 the number of days in one year.
Because months vary in length eg January is 31 days and February is 28 days most companies use DPRs to calculate interest. Enter your credit card balance your interest rate and an average monthly payment OR a time period to see how much interest youd actually pay based on your monthly payment or in a specific period of time. Thats how much interest youll be charged for one day. Convert your APR to a daily rate The majority of credit card issuers compound interest on a daily basis.
