1. What is the Discover Interest Calculation?

The Discover Interest Calculator computes the monthly interest charged on a Discover credit card balance based on the card's Annual Percentage Rate (APR).

2. How Does the Calculator Work?

The calculator uses the Discover interest formula:

Where:

• \( Balance \) — Current credit card balance in dollars
• \( APR \) — Annual Percentage Rate (as percentage)

Explanation: The formula converts the annual rate to a monthly rate by dividing by 12, then applies it to the current balance.

3. Importance of Interest Calculation

Details: Understanding monthly interest charges helps cardholders make informed decisions about payments and debt management.

4. Using the Calculator

Tips: Enter your current balance and APR (found on your statement). Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Is this the exact interest I'll be charged?
A: This is an estimate. Actual interest may vary based on billing cycle, payment timing, and daily balance method.

Q2: How can I reduce my interest charges?
A: Pay your balance in full each month, make payments early in the billing cycle, or consider balance transfer options.

Q3: Does this include fees?
A: No, this calculates interest only. Late fees or other charges are not included.

Q4: What if I have an introductory 0% APR?
A: If your APR is 0%, you'll pay no interest during the promotional period (but enter 0 as APR).

Q5: How often is interest compounded?
A: Credit card interest is typically compounded daily but charged monthly.