Credit Card Interest Calculator

APR stands for Annual Percentage Rate. It's the interest rate you'll pay yearly if you borrow money using a credit card, loan, or mortgage. APR includes both the interest and any extra fees, giving you a clear picture of the total cost of your borrowing. For credit cards, the APR tells you how much interest you’ll owe if you don’t pay your balance in full each month.

The minimum payment is the lowest amount you must pay on your credit card bill each month. It's usually a small part of what you owe, often 1-3%, or a set amount, whichever is higher. Paying the minimum helps you avoid late fees and protects your credit score, but you'll still have to pay interest on the remaining balance. Paying only the minimum payment means it takes longer and costs more to pay off your debt. To save money and get out of debt faster, try to pay more than the minimum whenever you can.

Yes, you can often avoid paying interest on your credit card by doing the following:

• Paying the balance in full each month by the due date. 
• Using the grace period (if there is one). This is the time between the end of your billing cycle and your payment due date. Paying within the grace period avoids interest on new purchases. The grace period is only applicable if the previous month’s balance was paid in full. If not, the grace period on new purchases is forfeited, and interest accrues immediately on new transactions.
• Not withdrawing cash as these usually accrue interest immediately. 

You can’t usually freeze credit card interest, but there are ways to reduce or temporarily stop paying interest: 

1. 0% APR offers: Some credit cards offer a 0% interest rate for a set period on new purchases or balance transfers. This can help you    avoid interest for a few months, usually between 6 and 18 months.

2. Balance transfers: Move your balance to a credit card with a lower interest rate or a 0% introductory rate to save on interest.

3. Contact your card provider. You should let them know as soon as you find yourself in financial difficulties. Often, card providers          want to help and can discuss your options with you.

4. Debt Management Plans. You can get help from a credit counselling agency to set up a debt management plan. They can negotiate lower interest rates with your creditors. 

Yes, you can often lower your credit card interest rate. Here are some ways to do it: 

1. Call your credit card company and ask if they can lower your interest rate. They might agree, especially if you have a good payment history with them or a strong credit score.

2. Improve your credit score. A higher credit score can qualify you for lower interest rates. Pay your bills on time, reduce your debt, and check your credit report for errors.

3. Shop around. Look for credit cards with lower interest rates. If you find a better offer, consider transferring your balance to a card with a lower rate.

4. Take advantage of promotional interest rates offered by credit card companies. These can include 0% interest on balance transfers or new purchases for a limited time.

Credit card interest is usually applied to your balance daily. Whatever you owe at the end of the day is charged at your daily interest rate. This is your APR (Annual Percentage Rate) divided by 365 (the number of days in a year).

Example: If your APR was 39%, your daily interest rate would be 0.1%. This means that if your balance was £100, for that day, it would cost you about 10p in interest. After one month, you would owe around £3 in interest. This interest is then added to your total balance.

The more you owe and the higher your APR, the more interest you'll pay in total.