1. What is the Tesco Credit Card Interest Calculation?

The Tesco Credit Card interest calculation determines how much interest you'll pay when making only the minimum payment. It's based on your principal balance and the annual percentage rate (APR) of your card.

2. How Does the Calculator Work?

The calculator uses the simple interest formula:

Where:

• \( I \) — Monthly interest (GBP)
• \( P \) — Principal balance (GBP)
• \( R \) — Monthly interest rate (annual rate / 12, as a decimal)

Explanation: The calculation converts the annual rate to a monthly rate by dividing by 12, then multiplies by your current balance to find the interest for that month.

3. Importance of Interest Calculation

Details: Understanding how interest accumulates helps you make informed decisions about credit card payments and debt management.

4. Using the Calculator

Tips: Enter your current credit card balance in GBP and the annual interest rate (APR) as a percentage. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Is this calculation only for Tesco credit cards?
A: While designed for Tesco cards, this calculation method applies to most standard credit cards.

Q2: What if I pay more than the minimum?
A: Paying more than the minimum reduces your principal faster, resulting in less interest over time.

Q3: Does this include fees or other charges?
A: No, this calculates only the interest portion. Your statement may include additional fees.

Q4: How accurate is this calculation?
A: This provides an estimate. Actual interest may vary based on your card's specific terms and billing cycle.

Q5: What's a typical APR for Tesco credit cards?
A: Tesco card APRs typically range from 18.9% to 27.9%, depending on the card type and your creditworthiness.