![]() ![]() Therefore, you should have been charged $7.45 in interest charges based on your $500 balance. ![]() Then multiply $500 x 0.0149 for an amount of $7.45 each month. Step 3: Multiply that number with the amount of your current balance.įor example, if you currently owe $500 on your credit card throughout the month and your current APR is 17.99%, you can calculate your monthly interest rate by dividing the 17.99% by 12, which is approximately 1.49%. Step 2: Divide your current APR by 12 (for the twelve months of the year) to find your monthly periodic rate. Step 1: Find your current APR and balance in your credit card statement. How do I calculate my monthly APR?Ĭalculating your monthly APR rate can be done in three steps: You'll know which rates are associated with your credit card by checking your card member agreement and monthly credit card statements. Promotional rates include zero-interest or low-interest periods offered as introductory incentives by credit card companies. Variable rates may increase or decrease depending on federal rates. With fixed rates, your APR is likely to stay the same throughout the time you have your card unless otherwise stated. ![]() If you are carrying a credit card balance, you will be charged interest at a rate that is calculated and determined by your credit card issuer. Monthly APR can also help you understand how much it is costing you to carry an unpaid balance each month.īelow, you will find steps and formulas for calculating both your daily and monthly percentage rates, which are based on your APR, and how they are applied to your balances. This information could help you make decisions about which credit cards you may want to focus on paying down quickly (if they are costing you too much in daily interest), and how much it is costing you each day to borrow from your credit card company. Your monthly statement may break down your credit card APR yearly, but you can break it down to a monthly APR yourself. Your credit card's APR is the interest rate you are charged on any unpaid credit card balances you have every month. Understanding how your credit card's annual percentage rate (APR) is calculated and applied to your outstanding balances is crucial to maintaining control over the growth of your overall credit card debt. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |