- 1). Find the annual percentage rate (APR) on your bill. It should be clearly printed in a conspicuous place. The APR is the interest you will pay over a year on a given balance. For example, if your APR is 15 percent, you will pay an extra $150 in interest on a $1,000 balance over the course of a year.
- 2). Add up your total charges for the month, along with any outstanding balance you have carried over. If you have not tallied these charges over the course of the month, a customer service representative at your card company can help you. Most credit card companies also have online access to your account, where you can review charges and even make payment directly from your bank account.
- 3). Multiply the total charges for the month (and carryover) from Step 2 by your APR. As an example, if you have $1,200 in charges and your APR is 15 percent, your finance charge will be $180.
- 4). Divide the APR by 12 to arrive at your monthly interest payment. In this example, $180 of annual interest equals $15 of monthly interest.
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