Calculating credit card interest

jhl1987

Please could anyone tell me how to calculate credit card interest? It is 16.95% on £1000.31 from 8th - 11th August and then still 16.95% on £500.31 from 11th August - 28th August.
Is there a calculator online or a format I can use for this calculation in the future?

Thank you in advance

YorkshireBoy

16.95% looks like an APR, but you need to use the annual non-compounded rate to calculate daily interest.

So, according to your statement (or if not, your T&Cs), 16.95% APR equates* to a monthly rate of 1.3134%. 12 x 1.3134% gives an annual non-compounded rate of 15.77%.

For your first period...

£1000.31 x 15.77% / 365 x 4 = £1.73

I'll leave you to do the second period.


* Confirm it with this calculator: http://stoozing.com/calculator/apr-rate-converter.php

jhl1987

Thank you very much

jhl1987

i have just tried this same calculation and have ended up with
157.75/6570 which totals 0.024
Where am I going wrong please?

YorkshireBoy

Haven't a clue where you've got 6570 from because...


£157.75 / 365 x 4 = £1.73 as I said above.

jhl1987

YorkshireBoy wrote: »

Haven't a clue where you've got 6570 from because...


£157.75 / 365 x 4 = £1.73 as I said above.

Now im more confused, i used excel so I dont know where that number came from either

I now have 157.75 / 1460 = 1.08 ??

Thanks for your time

YorkshireBoy

jhl1987 wrote: »

Now im more confused, i used excel so I dont know where that number came from either

I now have 157.75 / 1460 = 1.08 ??

Thanks for your time

You've put some invisible brackets around 365 x 4 (which gives you the 1460 figure) when you shouldn't have.


Its the result of 157.75 divided by 365 that is then multiplied by 4


Use a calculator instead (but use 0.1577 instead of 15.77%).

grumbler

Just copy and paste to Excel !!!!!!

=157.75/365*4

Have you ever heard of the order of operations?

It's (157.75/365)*4, not 157.75/(365*4)

YorkshireBoy

grumbler wrote: »

Just copy and paste to Excel !!!!!!

Not heard of that version grumbler. Is it new?...or very old?

jhl1987

Thanks for the clarification