Calculation of Credit Card Interest on daily bases

Calculation of Credit Card interest can be defined in this way if you charge your Credit Card to buy a cellphone Rs 20000/= and your credit card limit is Rs 250000/= then your limit remain Rs 230000/= now outstanding charged amount is Rs 20000/= here if your APR (Annual percentage rate) is for example 22% and you have to pay for 30 days then credit card interest calculation can be defined as below.

APR                                                           22%
   
Credit Card Limit                                Rs 250000

Less:Charged Amount                         Rs 20000

Remaining Limit                                 Rs 230000

Now you have to charge interest on Credit Card charged amount for 30 days.

Charged amount  multiply number of days spend.

                                                       Rs 20000   x   30 days =    Rs 600000

now calculate first day charged amount divide Rs 600000 by 30.

                                                        Rs 600000   /   30  =          Rs 20000

APR /number of days a year                     22%  / 365   =          0.06027397%

                                                      0.6027397%   x   30 =          18.082191%


now multiply charged amount to monthly interest rate.

                                             Rs 20000   x 18.082191% =         Rs 3616.4382 per month

this is the calculation of  Credit Card Interest.