 TITLE: How to Compare Credit Card Interest Rates CONTENT: How to Calculate an Interest Rate on a Credit Card\n--------------------------------------------------\nWhile it's not that hard to find a credit card's interest rate, it will take a little work to calculate the interest charges for a particular card. First, you have to determine the card's daily periodic rate by dividing the APR by 365 (days in the year). Next, you'll need to calculate your account's average daily balance. That's the total of the daily balances that you had on each day of your statement, divided by the number of days on your statement.\nNext, multiply the account's average daily balance by the daily periodic rate. Finally, multiply it by the number of days in the billing cycle. For example, let's say that you have an account with an APR of 15% and an average daily balance of $1,000. Your daily periodic rate will be 15% divided by 365, or 0.00041. If you multiply your periodic daily rate (0.00041) by your average daily balance of $1,000, you'll get $0.41. Essentially, you're incurring 41 cents of interest per day on your $1,000 average daily balance. Multiply that by the number of days in the billing cycle, and you'll have your monthly interest charges. So if you have 30 days in this month's statement cycle, then you'll incur about $12.33 in interest charges each month.\nThat is, until you factor in compounding interest daily. Most credit card issuers will add interest charges from the previous day into the next day's balance. This will have a small but significant effect of incurring even more interest charges, as your account's daily balance will increase by adding interest on the previous day's balance. For more information, see \"How Does Credit Card Interest Work?\" END