Convert any APR to monthly and daily interest rates and see how much interest accrues on your balance.
APR Inputs
Rate Breakdown
The APR Calculator converts a credit card's Annual Percentage Rate into the daily and monthly periodic rates that actually determine how much interest accrues on your balance — plus the effective annual rate (EAR) once compounding is factored in.
Card issuers advertise APR, but interest is usually calculated daily on your average daily balance and added to your statement once a month. That means the rate you actually pay (EAR) is always a bit higher than the stated APR. Use this tool to compare two cards' true costs side by side, or to see exactly how much a given balance will cost you in interest each day, month, and year.
Daily rate = APR ÷ 365 | EAR = (1 + APR/365)^365 − 1The daily periodic rate is simply the APR spread across 365 days. Because most issuers compound interest daily, the effective annual rate (EAR) — the rate you actually pay over a year — comes out higher than the stated APR. Multiply any periodic rate by your balance to get the dollar interest charge for that period.
Example 1: 22.99% APR on a $3,000 balance
Daily rate = 22.99% ÷ 365 ≈ 0.0630%. Monthly rate ≈ 1.916%.
Daily interest ≈ $1.89, monthly interest ≈ $57.49. With daily compounding, the EAR is about 25.81% — nearly 3 points higher than the stated 22.99% APR.
Example 2: Comparing two cards on a $5,000 balance
Card A: 19.99% APR. Card B: 27.99% APR. Both compound daily.
Card A costs about $999/year in interest (EAR ≈ 22.13%); Card B costs about $1,540/year (EAR ≈ 32.24%) — a difference of roughly $541/year on the same balance.
Example 3: Average 2026 US card APR (~24.5%) on $1,000
Daily rate ≈ 0.0671%, monthly rate ≈ 2.042%.
Carrying just $1,000 for a full year costs about $277 in interest at the effective annual rate of roughly 27.66%.
Methodology
Monthly rate = APR ÷ 12. Daily rate = APR ÷ 365. EAR (monthly compounding) = (1 + APR/12)^12 − 1. EAR (daily compounding) = (1 + APR/365)^365 − 1.
Annual Percentage Rate (APR) is the yearly cost of borrowing expressed as a percentage. For credit cards, it includes the interest rate but typically not fees. APR lets you compare different cards and loans on an equal basis.
APR is a simple annual rate; APY (Annual Percentage Yield) accounts for compounding. A 24% APR compounding daily has an effective APY of about 27.1%. Credit card issuers quote APR; savings accounts quote APY.
As of 2026, the average credit card APR is around 20–22%. Cards for excellent credit (750+) may offer 15–18%. Rewards cards often carry higher APRs of 20–27%. Balance transfer cards may offer 0% intro APRs for 12–21 months.
Disclaimer: Calculations are for informational purposes only and do not constitute professional financial advice. Please consult with a certified professional before making financial decisions.