CREDIT CARD INTEREST
APR is annual. Your balance changes every day.
Credit-card interest calculations depend on the card agreement, but understanding statement cycles, balances, and payment timing makes payoff projections much easier to evaluate.
APR is not a one-time fee
An annual percentage rate expresses borrowing cost on an annual basis. Many cards use a daily periodic rate and an average daily balance or similar method, so the exact interest charge can depend on when purchases and payments occur.
Minimum payment is not the payoff plan
The required minimum keeps an account current when paid on time, but a payoff forecast needs to model principal, interest, future charges, and any extra payment separately. Paying more toward principal generally changes later interest because less balance remains outstanding.
Statement balance and current balance differ
A statement closes at a point in time. New purchases, credits, payments, fees, and interest can change the current balance afterward. A financial plan should preserve those dates instead of treating every displayed balance as the same measurement.