Credit Card Interest Calculator for Australia

Credit cards in Australia typically charge 18–22% APR. This page explains how Australian credit card interest works and what it really costs you.

How Credit Card Interest Works in Australia

1. Your APR (18–22% in Australia) is divided by 365 to get the daily rate
2. Each day, the daily rate is applied to your outstanding balance
3. Interest accumulates and is added to your next statement
4. If you don't pay the full statement balance, you lose the grace period (44–55 days in Australia)

The Real Cost at 18–22% APR

At the mid-range of Australia's typical APR (20%), a A$3,000 balance with minimum-only payments could cost you over A$5,400 in total — nearly double the original amount.

How Extra Payments Save You Money

Even small increases above the minimum payment make a huge difference. Doubling your minimum payment on a 18–22% APR card can cut your payoff time by more than half.

Key Facts for Australia

• Typical APR range: 18–22%
• Interest calculation: Daily balance method
• Grace period: 44–55 days
• Minimum payment: Typically 2–3% of balance or $25 floor, whichever is greater
• Major issuers: Commonwealth Bank, Westpac, ANZ, NAB, Macquarie