1. What is the 1.99% APR Credit Card Calculator?

This calculator computes the monthly interest charges for a credit card with a 1.99% Annual Percentage Rate (APR). It helps cardholders understand how much interest they'll pay each month on their outstanding balance.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• \( P \) — Principal balance (Rs)
• \( I \) — Monthly interest (Rs)
• 0.0199 — The 1.99% APR expressed as a decimal
• 12 — Number of months in a year

Explanation: The formula converts the annual rate to a monthly rate by dividing by 12, then applies it to the principal balance.

3. Importance of Credit Card Interest Calculation

Details: Understanding monthly interest charges helps with budgeting and demonstrates the true cost of carrying a credit card balance. Even at a low 1.99% APR, interest can accumulate significantly over time.

4. Using the Calculator

Tips: Enter your current credit card balance in Rs. The calculator will show your estimated monthly interest payment at the 1.99% APR rate.

5. Frequently Asked Questions (FAQ)

Q1: Is 1.99% APR good for a credit card?
A: Yes, 1.99% is an excellent promotional rate, much lower than standard credit card APRs which typically range from 15-25%.

Q2: How is monthly interest different from APR?
A: APR is the annual rate, while monthly interest is that rate divided by 12 and applied to your balance.

Q3: Does this calculator account for daily compounding?
A: This simplified version uses monthly calculation. For precise daily compounding, the formula would be more complex.

Q4: What if my APR changes?
A: This calculator is specifically for 1.99% APR. Different rates would require different calculations.

Q5: How can I avoid paying interest?
A: Pay your statement balance in full each month by the due date to avoid all interest charges.