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 uses simple interest based on your principal balance and annual percentage rate (APR).

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 formula calculates interest by multiplying your outstanding balance by the monthly interest rate (annual rate divided by 12).

3. Importance of Interest Calculation

Details: Understanding your monthly interest helps in financial planning, debt management, and making informed decisions about credit card payments.

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

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

Q2: When is interest charged on my credit card?
A: Interest is charged when you don't pay your full statement balance by the due date, or when you make cash advances.

Q3: Does this calculator include other fees?
A: No, this only calculates interest. Late payment fees, annual fees, and other charges are not included.

Q4: How can I reduce my credit card interest?
A: Pay your balance in full each month, make payments before the due date, or consider balance transfer offers with lower rates.

Q5: Is this calculation specific to EastWest Bank Philippines?
A: While the formula is universal, the rates and terms are based on EastWest Bank Philippines' typical credit card offerings.