At any given moment, millions of people carry credit card debt that is earning interest. That interest is usually communicated as a relatively small percentage figure, but when applied to hundreds--even thousands -- of dollars, it can cost a lot of money in the long run. Many people aren't aware of how the interest is figured and don't ask to question it, but you can use your credit card's interest rate to determine how much you're spending, or to make sure you are being charged the right amount.
Step 1
Find the balance used to calculate interest. This is usually listed at the top of your account statement as a "closing balance" or "account balance."
Step 2
Find the interest rate listed on your account statement. If the interest rate is not listed on the account statement, you should be able to check the forms that came with your credit card when it was delivered to you.
Step 3
Divide the interest rate by 12, if your interest is computed monthly. For any other spending period, divide the number of days in that period by 365, then divide the interest rate by that number.
Step 4
Multiply the account balance by the product found in Step 3. This the amount (in dollars) of interest paid on your credit card.
Things You'll Need
- Calculator
- Account statement
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