KNOWLEDGE BASE
How is the interest calculated on my credit card account?
Calculating how much interest is charged can be confusing. These steps are broken into specific parts to make it easier to understand how we get to these figures. You'll need to have your billing statement available to locate the information needed. If you have questions or need assistance, please call us at 800-285-8585 and a banker can help you. We accept relay calls.
| Steps | Notes |
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1. Determine how many Days in the Billing Period there are for the statement period. |
It's found on page 1 of your statement, at the bottom of the Activity Summary section. |
| 2. Locate the Annual Percentage Rate (APR) for your balance(s). |
The APR can be found in the second to last column of the Interest Charge Calculation section, towards the end of the statement. You may have different APRs for promotional balances, balance transfers, purchases, cash advances, etc. |
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3. Calculate the Daily Periodic Rate (DPR) and convert it to a decimal figure. |
To get the DPR, take the APR and divide it by the number of days in the current year. Convert the DPR to a decimal by dividing it by 100. |
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4. Find the Balance Subject to Interest Rate (BSIR). |
The BSIR can be found within the Interest Charge Calculation section; it's the third column to the right. You may have different amounts for promotions, balance transfers, purchases, cash advances, etc. |
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5. Take the BSIR, multiplied by the DPR (in decimal form) multiplied by the days in billing period. This will equal the amount of interest charged for that individual balance type. | The formula is: BSIR x DPR x Days in Billing Period = Interest charged. |
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6. Add the interest charged to each BSIR together to get the final sum. | This figure is the total amount of interest charged for your entire balance. |
Example:
- There's 32 days in the billing period.
- Find your APRs:
- Promotional balance at 0%.
- Purchase balance at 23.49%.
- Cash advance balance at 23.49%.
- Calculate DPRs and convert them to decimals.
- Promotional DPR = 0.0000000.
- Purchase DPR = 0.0006435.
- Cash advance DPR = 0.0006435.
- Find the BSIR amounts:
- Promotional BSIR = $1000.
- Purchase BSIR = $1500.
- Cash advance BSIR = $500.
- Calculate the interest amounts charged:
- 32 days x 0.0000000 x $1000 = $0.00.
- 32 days x 0.0006435 x $1500 = $30.88.
- 32 days x 0.0006435 x $500 = $10.29.
- Add the interest charges together, for a total of $41.17.