1. What is the Maya Credit Card Interest Calculation?

The Maya Credit Card interest calculation determines the monthly interest charge based on your outstanding balance and annual percentage rate (APR). This helps cardholders understand how much they'll pay in interest if they don't pay their full balance.

2. How Does the Calculator Work?

The calculator uses the simple interest formula:

Where:

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

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

3. Importance of Interest Calculation

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

4. Using the Calculator

Tips: Enter your current credit card balance in PHP and the annual percentage rate (APR). All values must be valid (balance > 0, APR ≥ 0).

5. Frequently Asked Questions (FAQ)

Q1: How is APR different from monthly interest rate?
A: APR is the annual rate, while the monthly rate is APR divided by 12. This calculator converts APR to monthly rate automatically.

Q2: What is Maya's typical credit card APR?
A: Maya credit cards in the Philippines typically have APRs ranging from 24% to 36% annually, depending on the card type and customer creditworthiness.

Q3: When is interest charged on my Maya credit card?
A: Interest is typically charged when you carry a balance past the payment due date or don't pay the full statement balance.

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

Q5: How can I reduce my interest payments?
A: Pay your balance in full each month, make payments before the due date, or consider balance transfer options with lower rates.