Credit card interest calculator and what a lower rate saves
Type your balance and APR. You will see what the card costs you this month and this year, how long the minimum payment takes to clear it, and how much a rate cut would save.
A 6.3-point cut would save you
$315
in the first year, and $2,452 in interest over the whole payoff if you pay only the minimum, debt-free 1 year 1 month sooner.
Calculated from your numbers with Haggle's tested engine. Not a quote from your bank.
| Measure | Now | After the cut |
|---|---|---|
| APR | 22.36% | 16.06% |
| Interest this month | $93.17 | $66.92 |
| Interest over a year | $1,118.00 | $803.00 |
| First minimum payment | $143.17 | $116.92 |
| Debt-free on minimum payments in | 19 years 3 months | 18 years 2 months |
| Total interest on minimums | $8,241 | $5,789 |
Haggle can make this call. If the bank says yes, its fee is 20% of the first-year saving: $63.00 here. No yes, no fee.
Have Haggle ask for this cutLaunching soonAssumes the balance stays the same for a year and no new purchases. The minimum payment is 1% of the balance plus that month's interest, at least $25. Your card's rule is on your statement.
Questions about card interest
How is credit card interest calculated?
Most cards charge interest every day on your average daily balance. This calculator uses a close, simpler version: your balance times your APR, divided by 12 for one month. Your statement shows the exact interest your bank charged.
How much can a lower APR save?
Most people who ask get a cut. 84% (LendingTree survey, via KKTV) of cardholders who asked for a lower rate got one, and the average cut was 6.3 pts (LendingTree survey, via KKTV). Calculated with this tool, a 6.3-point cut on a $5,000 balance saves $315 in the first year.
What is the average credit card APR right now?
On accounts that were charged interest, 22.36% (Federal Reserve G.19).
Why does paying only the minimum take so long?
A typical minimum is 1% of the balance plus that month's interest, at least $25. Most of each early payment goes to interest, so the balance shrinks slowly. A lower APR moves more of every payment onto the debt itself.
Does Haggle see or save what I type here?
No. The calculator runs in your browser tab. Nothing you type is sent or stored.
Ready to ask? See how each bank handles rate cuts and the number to call.
Rather not make the call yourself?
Haggle calls your card issuer, waits on hold, and asks for a lower rate. You pay only if the bank says yes.
