1. What is Credit Card Interest?

Credit card interest is the cost of borrowing money on your credit card for work expenses. It's calculated based on your outstanding balance and the annual percentage rate (APR) of your card.

2. How Does the Calculator Work?

The calculator uses the simple interest formula:

Where:

• \( P \) — Principal balance (current amount owed)
• \( R \) — Monthly interest rate (APR ÷ 12)
• \( I \) — Monthly interest charge

Explanation: The formula calculates how much interest you'll pay each month on your work-related credit card charges.

3. Importance of Calculating Work-Related Interest

Details: Tracking interest on work expenses helps with accurate expense reporting, tax deductions, and understanding the true cost of business expenditures.

4. Using the Calculator

Tips: Enter your current credit card balance for work expenses and your card's APR. The calculator will show your estimated monthly interest charge.

5. Frequently Asked Questions (FAQ)

Q1: Should I include all credit card balances or just work expenses?
A: For accurate work expense tracking, only include balances related to business expenditures.

Q2: How often should I calculate this interest?
A: Monthly calculations are recommended to track expenses accurately.

Q3: Can I deduct this interest on my taxes?
A: In many jurisdictions, interest on work expenses may be tax-deductible (consult a tax professional).

Q4: What if my APR changes?
A: Recalculate with the new APR whenever your credit card terms change.

Q5: Does this include compound interest?
A: This calculates simple monthly interest. Actual credit cards may compound daily.