How to calculate Credit Card interest is always a complicated task, especially when you have more than one card with different credit operators, but we are here to help you accomplish this mission.
But after all, how can I calculate credit card interest correctly? Credit card interest, popularly known as revolving credit, is triggered when the total invoice amount is not paid.
The minimum payment is a service offered by credit card companies for those who do not have the money to pay the full amount of the invoice and it works as a debt financing.
Important information, interest, fees and more
However, in Brazil it is 352.76% per year and 15% to 20% per month, one of the highest rates in the world, according to a survey by Proteste.
For a practical comparison, the percentage of interest on annual credit in Argentina is 47.40% and 24.99% in the US. The interest rate on credit in the country has been registering falls, but it is still not very significant for the pockets of Brazilians.
Check now how to calculate the interest on your credit card
Credit card: calculation of interest on the minimum payment
Soon after, you need to get the full amount of the invoice that you paid the minimum. Example: R$ 880.00.
> Try to find the allowed amount on the invoice, for example: R$ 176.00.
Calculate the revolving balance as follows: total invoice amount (subtracting) minimum amount. Example: R$ 880.00 – R$ 176.00 = R$ 704.00.
Understand the interest rate of the revolving monthly? Call your carrier if you can't find this information on your bill. Example: 14.72%.
> Now that you know the percentage, do the following calculation to find interest: revolving balance (multiplied) by the interest rate. Example: R$ 704.00 x 14.72 = R$ 103.62.
To find out what the debit balance will be on the next invoice, calculate: revolving balance at revolving interest. Example: R$ 704.00 +R$ 103,
Anyway, for more information on this subject, click here and read other special matters.
