How to Calculate Credit Card Interest?

How to Calculate Credit Card Interest ? 2. Determine your average daily balance : The next step is to determine your average daily balance ( ADB ) , which is the average amount you owe on your credit card each day during the billing cycle . 4. Consider other fees and charges : In addition to interest , credit card companies may charge other fees , such as late payment fees , over - limit fees , cash advance fees , etc. .0 . 1. Know your credit card interest rate : Your credit card company will charge you interest on your outstanding balance , which is typically expressed as an Annual Percentage Rate ( APR ) in India . 3. Calculate the interest on your credit card : Once you have determined your ADB , you can use it to calculate the interest on your credit card . 5. Finalize the Calculation : Your credit card statement will typically show the interest charge for the billing cycle , which is the amount you'll need to pay if you carry a balance .