Credit Card Annual Cost
Free Credit Card Annual Cost calculator with clear step-by-step results.
About Credit Card Annual Cost
Carrying a balance means paying interest on it all year, plus any annual fee.
Formula
Formula
Interest = balance × APR; total = interest + annual fee
Worked example
With the default values below, Credit Card Annual Cost returns Annual Interest Cost of $660.00. Change any input above and every figure here is recalculated in your browser.
Inputs used
- Average balanceminimum 0 $
- 3,000 $
- APRaccepts 0–40
- 22
- Annual feeminimum 0 $
- 95 $
Results
- Annual Interest Cost
- $660.00
- Total Annual Cost
- $755.00
- Effective Cost Rate
- 25.17%
Step by step
- 1Values used
- 2Formula
- 3Annual Interest Cost= $660.00
- 4Total Annual Cost= $755.00
- 5Effective Cost Rate= 25.17
Assumptions and limits
- The result is derived only from the 3 inputs listed above. Anything not among them is not part of the calculation.
- In particular, this calculator does not take inflation or tax into account.
- Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
- This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.
How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.
Frequently Asked Questions
How does this calculator work?
Carrying a balance means paying interest on it all year, plus any annual fee.
Why does this matter?
Pay the full statement balance to avoid interest.