1. What is the EastWest Credit Card Interest Calculation?

The EastWest credit card interest calculation determines how much interest you'll pay each month on your outstanding balance. It's based on your principal balance and the annual percentage rate (APR) converted to a monthly rate.

2. How Does the Calculator Work?

The calculator uses the simple interest formula:

Where:

• \( I \) — Monthly interest (PHP)
• \( P \) — Principal balance (PHP)
• \( R \) — Monthly interest rate (APR / 12 as decimal)

Explanation: The APR is divided by 12 to get the monthly rate, then multiplied by the principal balance to calculate the interest.

3. Importance of Interest Calculation

Details: Understanding your monthly interest helps in financial planning and debt management. It shows how much of your payment goes toward interest versus principal.

4. Using the Calculator

Tips: Enter your current principal balance in PHP and your card's APR percentage. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the typical APR for EastWest credit cards?
A: EastWest credit cards typically have APRs ranging from 24% to 36% annually, depending on the card type and customer's creditworthiness.

Q2: When is interest charged on my credit card?
A: Interest is charged when you don't pay your statement balance in full by the due date. It's calculated daily but charged monthly.

Q3: How can I reduce my credit card interest?
A: Pay your balance in full each month, make payments on time, or consider balance transfer options with lower interest rates.

Q4: Does this calculator include other fees?
A: No, this only calculates monthly interest. Late payment fees, annual fees, and other charges are not included.

Q5: How accurate is this calculator?
A: This provides an estimate of monthly interest. For exact amounts, refer to your monthly statement from EastWest Bank.