Cost of carrying a card balance. The Business Credit Card Interest Calculator takes balance carried, annual interest rate, months the balance is carried and returns interest over the period (compounding monthly) plus interest in the first month, interest per day, balance after the period if nothing is paid. Results update as you type, and the formula is shown under the result so you can repeat it in your own spreadsheet.
The headline interest rate is only part of what a loan costs: fees, the structure of repayments and how the rate is quoted (flat or reducing) all change the true cost. Compare offers on total interest and effective rate, not on EMI alone. Use the worked example below to check the maths against your own figures.
How the Business Credit Card Interest Calculator works
Card interest runs at 30–45% a year in India and compounds monthly, so a carried balance grows quickly. Pay the statement balance in full or move the debt to a cheaper loan.
Worked example
With the example values (balance carried of $5,000, annual interest rate of 36%, months the balance is carried of 6 months), the interest over the period (compounding monthly) is $970.26; interest in the first month $150.00, interest per day $4.93, balance after the period if nothing is paid $5,970.26. Change any figure above and the result updates immediately; use Copy results to paste the summary into a note or email.
Related Calculators
Frequently Asked Questions
How is interest over the period (compounding monthly) calculated?
interest = balance × [(1 + APR ÷ 12)months − 1].
Which figures do I need?
Balance carried, annual interest rate, months the balance is carried. Take them from the same period and the same set of accounts or reports so the ratio is consistent, and check the example values as a guide to the units expected.
Does the result include fees and charges?
Only where there is a fee input. Processing fees, insurance and prepayment charges add to the true cost; the APR and loan comparison calculators include them.
