What is the best way to calculate my monthly intrest on credit cards?
EXAMPLE: Lets say i have 4 credit cards with 13%, 17%,22%, and 8% APR and i have charged 100 dollars to each of these cards. What would the intrest be on each individual card after one month.
(I really didnt charge that much to that many cards it was an example)
Tags: Best, Calculate, Cards, Credit, intrest, Monthly
In this case, let’s assume that the $100 was the balance at the beginning of the month. Since the balance on all 4 cards is the same, you can add the APR’s and divide by 48 (4 cards, 12 months in the APR). This gives you 1.25% per month. Then multiply this by your balances – $400, and voila! Your interest is $5.
Just multiply everything by a factor of “You’re screwed.” For example, $400 X (you’re screwed) = you’re screwed 400 times over when you rack up credit card debt.
Keeping in mind that they compound the interest daily, it’s hard to give an exact amount without a calculator (it makes my brain hurt!)
I’m no math expert, but it seems this method will give you a good estimate:
ADB (Average Daily Balance)
Days (Days in billing cycle)
Int (Interest Rate)
So if you use this formula:
INT/365 * Days * ADB
13%/365 * 30 * $100 = $1.07 (first CC)
17%/365 * 30 * $100 = $1.39 (second CC)
22%/365 * 30 * $100 = $1.81 (third CC)
8%/365 * 30 * $100 = $.66 (fourth CC)
Total of all cards $4.93
It’s the amount x the %, payment is 2% of balance.
8% = $100.80…$2.03
13% = $102.05…$2.05
17% = $101.70…$2.07
22% = $102.20…$2.09
Total debt would be $406.75
Total payments would be $8.24