How Much Interest Accrues on $1,000 in One Day at 18% APR?
A $1,000 balance at 18% APR accrues approximately $0.49 in interest per day.
How to use this tool
- Enter the balance interest is charged on.
- Enter the card's APR.
- Enter the number of days (e.g. a billing cycle).
- Read the daily rate, interest per day, period interest, and ending balance.
Ever wonder what a single day of credit card interest costs on $1,000? This calculator shows the exact daily interest charge at 18% APR.
Frequently asked questions
- How is the daily periodic rate calculated?
- Divide the APR by the number of days in the year. Most issuers use 365, so a 18.25% APR gives a daily rate of 0.05%. Some use 360, which is slightly higher.
- Does this account for daily compounding?
- No — it uses simple daily interest on a fixed balance. Issuers that compound daily add each day's interest to the balance, making the real charge marginally higher over long periods.
- Why do issuers charge interest daily?
- Daily accrual lets issuers charge interest based on your actual balance each day (often via an average daily balance), so paying down sooner reduces the interest you owe.