Daily Interest Calculator for Credit Card

This online calculator computes the daily interest rate, the total interest accrued on an amount of money on a credit card on a day-to-day basis and the final interest amount.


  • Principal or Initial amount on your credit card statement in any currency
  • Annual Percentage Rate
  • Time period (in years, months and days) over which interest is to be calculated

The calculator will provide the daily interest rate (%) and interest in any currency over the time interval


Find the Annual Percentage Rate (APR) on your credit card statement.

Daily Periodic Rate = APR/365

Daily Interest = Current Balance × Daily Periodic Rate

Monthly Interest = Daily Interest × Number of Days in a Month

Annual Interest = Daily Interest × Number of Days in a Year

Example Calculations

For a APR of 18% and a credit card balance of $1,000: The Daily Interest rate is 0.049% equivalent to $0.49. Over the period of a month, the interest is $14.90 and over a one year period it is $197.10.


Credit card debt can quickly spiral out of control due to the effects of compounding daily interest.

Unlike some loans where interest might be calculated monthly or annually, credit cards typically calculate interest daily.

This daily compounding can lead to significant interest charges if balances are not paid off promptly. To manage your credit card debt effectively, it’s crucial to understand how daily interest works and how to calculate it.

How Does Daily Interest Work on Credit Cards?

Credit card companies often use a method called daily compounding to calculate interest. This means that interest is calculated and added to your balance every day. Here’s a simplified breakdown of how it works:

  • Daily Periodic Rate: The annual interest rate (APR) is divided by 365 to determine the daily interest rate. Daily Periodic Rate = APR/365
  • Daily Interest Calculation: Each day, the interest is calculated based on the current balance. This daily interest is then added to the balance, increasing the amount on which the next day’s interest is calculated. Daily Interest = Current Balance × Daily Periodic Rate
  • Compounding Effect: As interest is added daily, the balance grows slightly each day, leading to more interest being calculated on a slightly larger amount each subsequent day. This is known as compounding interest.

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