Credit Card Interest Calculator for United States

Credit cards in United States typically charge 20–30% APR. This page explains how American credit card interest works and what it really costs you.

How Credit Card Interest Works in United States

1. Your APR (20–30% in United States) 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 (21–25 days in United States)

The Real Cost at 20–30% APR

At the mid-range of United States's typical APR (25%), a $6,500 balance with minimum-only payments could cost you over $11,700 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 20–30% APR card can cut your payoff time by more than half.

Key Facts for United States

• Typical APR range: 20–30%
• Interest calculation: Daily balance method
• Grace period: 21–25 days
• Minimum payment: Typically 1–3% of balance or $25–$35 floor, whichever is greater
• Major issuers: Chase, Bank of America, Citi, Capital One, Discover