Credit Card Interest Calculator for United Kingdom

Credit cards in United Kingdom typically charge 18–25% APR. This page explains how British credit card interest works and what it really costs you.

How Credit Card Interest Works in United Kingdom

1. Your APR (18–25% in United Kingdom) 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 (21–56 days in United Kingdom)

The Real Cost at 18–25% APR

At the mid-range of United Kingdom's typical APR (22%), a £2,000 balance with minimum-only payments could cost you over £3,600 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 18–25% APR card can cut your payoff time by more than half.

Key Facts for United Kingdom

• Typical APR range: 18–25%
• Interest calculation: Daily balance method
• Grace period: 21–56 days
• Minimum payment: Typically 1% of balance plus interest, or a £5–£25 floor
• Major issuers: Barclays, HSBC, Lloyds, NatWest, Nationwide