--- title: How do credit card companies calculate your Interest? description: Unravel credit card interest! Learn how APR, daily rates, and balances determine your charges. Discover tips to avoid high-interest traps and save money. image: https://kornerstoneliving.uownleasing.com/hubfs/AdobeStock_239234750.jpeg --- - [Merchant Login](https://merchant.uownleasing.com) - [Customer Login](https://portal.kornerstoneliving.com/) [![KL Uown Logo](https://kornerstoneliving.uownleasing.com/hs-fs/hubfs/KL%20Uown%20Logo.png?width=170&height=96&name=KL%20Uown%20Logo.png "KL Uown Logo")](https://www.kornerstoneliving.com/home) - [Find a Store](https://kornerstoneliving.uownleasing.com/find-a-store) - [Solutions](https://kornerstoneliving.uownleasing.com/better-solutions) - [K-Protect](https://kornerstoneliving.uownleasing.com/kprotect) - [About](https://kornerstoneliving.uownleasing.com/about) - [Customer Portal](https://portal.kornerstoneliving.com) - [Merchant Portal](https://merchant.uownleasing.com) [![KL Uown Logo](https://kornerstoneliving.uownleasing.com/hs-fs/hubfs/KL%20Uown%20Logo.png?width=170&height=96&name=KL%20Uown%20Logo.png "KL Uown Logo")](https://www.kornerstoneliving.com/home) - [Find a Store](https://kornerstoneliving.uownleasing.com/find-a-store) - [Solutions](https://kornerstoneliving.uownleasing.com/better-solutions) - [K-Protect](https://kornerstoneliving.uownleasing.com/kprotect) - [About](https://kornerstoneliving.uownleasing.com/about) - [Customer Portal](https://portal.kornerstoneliving.com) - [Merchant Portal](https://merchant.uownleasing.com) [![KL Uown Logo](https://kornerstoneliving.uownleasing.com/hs-fs/hubfs/KL%20Uown%20Logo.png?width=200&height=96&name=KL%20Uown%20Logo.png "KL Uown Logo")](https://www.kornerstoneliving.com/home) - [Find a Store](https://kornerstoneliving.uownleasing.com/find-a-store) - [Solutions](https://kornerstoneliving.uownleasing.com/better-solutions) - [K-Protect](https://kornerstoneliving.uownleasing.com/kprotect) - [About](https://kornerstoneliving.uownleasing.com/about) - [Customer Portal](https://portal.kornerstoneliving.com) - [Merchant Portal](https://merchant.uownleasing.com) # How do credit card companies calculate your Interest? 21 Feb 2024 ![Picture of Kornerstone Living](https://app.hubspot.com/settings/avatar/d41d8cd98f00b204e9800998ecf8427e) [Kornerstone Living](https://kornerstoneliving.uownleasing.com/smart-money-decisions/author/kl) ![](https://kornerstoneliving.uownleasing.com/hubfs/AdobeStock_239234750.jpeg) #### **A few key terms to understand:** - APR (Annual Percentage Rate): This is the yearly interest rate that will be applied to your balance, typically shown as a percentage like 29.99%. - Statement balance: The total amount you owe at the conclusion of the last billing cycle. - Daily interest rate: The APR calculated on a daily basis. **Example: When you do not pay off your Statement balance:** 1. You charged a total of $1,200 in a billing cycle of 30 days. 2. Your daily interest rate is 29.99% / 365 = 0.0822% 3. Your interest charge would be: $1,200 x 0.0822% x 30 days = $29.58 #### **Tips to avoid high-interest rates.** - Always pay your statement balance in full before the Payment due date whenever possible. - Pay more than the recommended Minimum Payment Amount. - Make sure all your credit cards have a “Grace Period.” - Any late payment will trigger the highest interest rate *plus fees*. - Any Promotional rates will no longer be applied if payments are late or not paid in full. Here are examples of how Chase charges interest on their credit cards and a more in-depth article on how interest is charged based on daily balance. [https://www.chase.com/personal/credit-cards/education/interest-apr/how-to-calculate-credit-card-apr-charges](https://www.chase.com/personal/credit-cards/education/interest-apr/how-to-calculate-credit-card-apr-charges) [https://www.forbes.com/advisor/credit-cards/how-is-your-credit-card-interest-calculated/](https://www.forbes.com/advisor/credit-cards/how-is-your-credit-card-interest-calculated/) ### Share: [Share on Facebook](http://www.facebook.com/share.php?u=https://kornerstoneliving.uownleasing.com/smart-money-decisions/how-do-credit-card-companies-calculate-your-interest&utm_medium=social&utm_source=facebook) [Share on LinkedIn](http://www.linkedin.com/shareArticle?mini=true&url=https://kornerstoneliving.uownleasing.com/smart-money-decisions/how-do-credit-card-companies-calculate-your-interest&utm_medium=social&utm_source=linkedin) [Share on X](https://twitter.com/intent/tweet?original_referer=https://kornerstoneliving.uownleasing.com/smart-money-decisions/how-do-credit-card-companies-calculate-your-interest&utm_medium=social&utm_source=twitter&url=https://kornerstoneliving.uownleasing.com/smart-money-decisions/how-do-credit-card-companies-calculate-your-interest&utm_medium=social&utm_source=twitter&source=tweetbutton&text=How%20do%20credit%20card%20companies%20calculate%20your%20Interest) ## Kornerstone Living ## Comments ## Related posts Search [What to Look for When Choosing a Company: Reviews, Ratings, and Accreditation](https://kornerstoneliving.uownleasing.com/smart-money-decisions/what-to-look-for-when-choosing-a-company-reviews-ratings-and-accreditation) [How to read your credit card statement and understand why you may owe a lot more than you thought!](https://kornerstoneliving.uownleasing.com/smart-money-decisions/how-to-read-your-credit-card-statement-and-understand-why-you-may-owe-a-lot-more-than-you-thought) Search [![KL Uown Logo](https://kornerstoneliving.uownleasing.com/hs-fs/hubfs/KL%20Uown%20Logo.png?width=1500&height=330&name=KL%20Uown%20Logo.png "KL Uown Logo")](https://uownleasing.com/) [![MERCHANT LOGIN](https://no-cache.hubspot.com/cta/default/4659227/interactive-142789733815.png)](https://kornerstoneliving.uownleasing.com/hs/cta/wi/redirect?encryptedPayload=AVxigLIlYKV5%2BF3bus6jPInT9onP1wlF8MEeHbsx%2Bj3r3qaCMhZb%2BQl3Kh7Mpr9MmNjzXtb%2BHUCsY1oBGaDoqZ3844nc6JcekEu31U9y5GDE5Z%2FHiG69Px88YGWW1tGtO%2BiztFwzFFNcy0FP9IEyVRzyOi9C3dRAPgGw3HdevScgVqJDk%2BfPOQ%3D%3D&webInteractiveContentId=142789733815&portalId=4659227) Merchant Support : Phone: (833) 222- 2112 Email: [rs@kornerstoneliving.com](mailto:rs@kornerstoneliving.com) Mon-Sat: 8am-11pm EST Sun: 11am-11pm EST [![CUSTOMER LOGIN](https://no-cache.hubspot.com/cta/default/4659227/interactive-142789733895.png)](https://kornerstoneliving.uownleasing.com/hs/cta/wi/redirect?encryptedPayload=AVxigLKIXMoY6TkuJq7BP210yHrlTY9MdtvUUmz%2FgvF01xtGz7MOTetBo8nY%2F1T9PmR1JBH%2FQE3NBoweTY5hLysQgp7fHWgo%2F%2BIOm9UzIZgZxDLH4wqHgzmmvW5mGieoG8GjLch2ksQiUPQOAv%2FFcLIazHcPl0%2B23eL0l7ukyl8HxvB7Gz2sU1pIGw%3D%3D&webInteractiveContentId=142789733895&portalId=4659227) Customer Support : Phone: (888) 521-5111 Email: [cs@kornerstoneliving.com](mailto:cs@kornerstoneliving.com) Mon-Fri: 8am-11pm EST / Sat:  9am-11pm EST Sun: 10am-11pm EST **Kornerstone Living:** 406 W South Jordan Parkway #600, South Jordan, UT 84095, USA **Uown Leasing:** 10500 University Center Drive, Suite 150, Tampa, FL 33612, USA   [![Kornerstone Credit, LLC BBB Business Review](https://seal-utah.bbb.org/seals/blue-seal-200-42-bbb-90024434.png)](https://www.bbb.org/us/ut/south-jordan/profile/consumer-finance-companies/kornerstone-credit-llc-1166-90024434/#sealclick)   - [Our Story](https://kornerstoneliving.uownleasing.com/about) - [Better Solutions](https://kornerstoneliving.uownleasing.com/better-solutions) - [K-Protect](https://kornerstoneliving.uownleasing.com/kprotect) - [Privacy Policy](https://kornerstoneliving.uownleasing.com/privacy-policy) - [Terms and Conditions](https://kornerstoneliving.uownleasing.com/terms-and-conditions) ## The advertised service is a rental – or lease-purchase agreement (or in specified states, a rent-to-own agreement; a consumer rental-purchase agreement; a lease agreement with an option to purchase; or a consumer-lease agreement) provided by Kornerstone Living or its affiliates. Not available in MN, NJ, WI or WY. Merchant participating locations only. \*90-day purchase option includes a markup over Cash Price (except for 3-month purchase option in CA). While no credit score is required, Kornerstone Living obtains information from consumer reporting agencies to verify identity in connection with a lease application. Not all applicants are approved. Acquiring ownership through leasing costs more than the retailer’s cash price. See lease for details.   Copyright © Mollie, LLC, dba Uown Leasing dba Kornerstone Living 2025. 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