Skip to Content

Credit Card Interest Calculator

Begin Main Content

What’s the true cost of your credit card debt?

Credit card interest compounds over time, and many cards charge interest on interest. Don’t get caught up in a cycle of credit card debt. Find out the true cost of your credit card debt, and see if you can do something about it today.

(Your Annual Percentage Rate or interest rate)

This needs to be over $0 to cover your monthly minimum.

The Tally Credit Line

Can Tally save you money on interest?

True cost of your credit cards

Total Credit Card Balances


Total Interest Costs


Payoff Time


Try Tally Now

You could be missing out on time and interest savings. Try Tally now to see how much you could save.

Calculated savings and payoff timing are estimates only, based on the information you entered.

Tally’s easy-to-use Credit Card Interest Calculator shows exactly how much users owe, where it’s owed and how to handle payments. In this guide, we’ll walk you through using the credit card interest rate calculator and understanding your results. We’ll also cover some basic terminology so you can tackle your accumulating interest as seamlessly as possible going forward.

Mastering the Ins & Outs
of Debt Terminology

Credit Card Balance – This is the total dollar amount you owe to a credit card company. You might have multiple different balances if you have multiple credit cards.

Balance Transfer – Like transferring money from your checking account to savings, a balance transfer is a credit card transaction that moves your debt from one account to another—oftentimes, to one with a lower interest rate.

Debt Consolidation – This combines multiple—usually high-interest—debts into a single payment, sometimes with a lower interest rate.

Utilization Ratio – Also called your credit utilization rate, this is your current credit debt—how much you are currently borrowing—divided by your total available credit—the maximum amount you could borrow.

Minimum Payment / Monthly Payment – Your minimum monthly payment is the absolute least amount of money you can pay towards your credit debt while remaining in good standing with the credit card company.

Current Balance – Much like your credit card balance, this is the total amount you owe on your account, minus pending interest charges.

Credit Limit – This refers to the maximum amount you can borrow from—and therefore, owe to—your credit card company before being penalized.

Interest Rate / Interest Charge – Your interest rate is the percentage you’ll be charged for borrowing money. Your interest charge, then, is the actual amount you owe the credit card company, based on your interest rate and the amount of money you’ve borrowed.

APR – Similar to your interest rate, your Annual Percentage Rate is the cost of borrowing money—the percentage you’ll be charged—plus additional costs and service fees.

Credit Score – This is a number assigned to you as an evaluation of your capacity to return borrowed money and an indication of your future creditworthiness. A high credit score is earned by making prompt debt repayments on credit cards and other loans.

How To Use Tally’s Interest Calculator

Tally’s interest calculator helps credit card holders understand their finances and chart out the best repayment path going forward. The final destination? Freedom from credit card debt and a far-less stressful financial life. 

To use this credit card interest calculator, first gather your bank statements, credit card account details and your credit report and score. With that in hand, all you have to do is answer a few simple questions:

What’s your credit score? - This will give us a clearer view of  your eligibility for our line of credit. You’ll choose from four different ranges: 300 to 629, 630 to 689, 690 to 719, 720 to 850

What’s your current credit card balance? - A healthy financial future requires an accurate understanding of your current financial situation. Enter your current balance for each of your credit cards. 

What's your current APR? - In addition to sharing your balance information, enter the annual percentage rate (APR) for each balance. 

What was your last monthly payment? - Your previous payments say a lot about your current and future ability to make payments of the same amount. Entering your last payment will help us estimate your debt-free timeline.

Once you’ve entered all of your information, we’ll determine your eligibility for a line of credit. If you qualify, we’ll create a credit card payoff roadmap so you can start tackling debt and saving money.

Understanding Your Results

Your results will illustrate two key benefits:

Saving more money – With Tally’s lower-interest line of credit, we’ve been able to help users cut their credit card interest rates. Your results will show how much more money you could save with a similar Tally line of credit.

Getting out of debt sooner – You could potentially cut your debt repayment time in half. When you have less total interest to pay per month and are approaching your debt repayment offensively instead of defensively, you’ll be able to shave off credit card debt more quickly each month. Just how quickly? Your results will also show you how long it’ll take to pay off your debt, including interest.

Tally’s interest calculator is a helpful tool in planning your interest repayment strategy, but the key determining factor in how much interest you’ll end up paying is you. That’s why it’s important to understand the ins and outs of interest rate terminology, not just how much you’ll be shelling out each month.


Tally can help you save money immediately on your high-interest credit cards and get you out of debt faster. If you qualify, we give you a credit line with a low interest rate and use it to pay off your cards. We manage all your credit cards for you. All you have to do is make one easy payment to Tally every month.

You must be 18 years old and live in a state where Tally is available. You must also have a FICO Score of 680 or higher to use Tally. We perform a soft credit check when you sign up for Tally, which means you can apply without hurting your credit score.

The Tally app is free to download. To get the benefits of Tally, you’ll need to qualify for and get a Tally credit line. Depending on your credit history, your APR (which is the same as your interest rate) will be between 7.90% - 29.99% per year. And similar to credit card APRs, it will vary with the market based on the Prime Rate. (This information is accurate as of June 2021.)

We use the Daily Balance Method. First, we calculate your interest charge each day, multiplying your Daily Balance by your Daily Periodic Rate. (Your Daily Periodic Rate is your APR divided by the number of days in the year). Then, we add up all the daily interest charges in your billing cycle to get your total interest charge for the statement period. To calculate your Daily Balance, we take the beginning balance each day, add any new transactions made that day and subtract any payments or credits made that day. Unlike most credit cards, we don’t compound interest daily — you are only charged interest on what you borrow.

Tally monitors the balances, APRs and due dates on each card you register. Then, Tally uses your credit line to pay your cards in the way that will save you the most money. Payments are sent at least two (2) business days before your card’s due date to ensure payment arrives on time.

You receive an emailed statement every month with the amount you must pay. You can pay anytime directly in the Tally app from your linked checking account.