Why is credit card interest so high compared to other loans?

Credit cards are unsecured, revolving debt with no collateral, which issuers price with higher rates than secured loans like mortgages or auto loans.

Credit Card Interest Calculator

Credit

Calculate the monthly interest charge on a credit card balance.

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Changing the display currency only changes the symbol shown — amounts aren't converted, since this tool doesn't use live exchange rates.

Current balance

APR (%)

Interest charged this month

Daily rate:

Monthly Interest = Balance × (APR ÷ 12). Daily periodic rate = APR ÷ 365, shown for reference since some issuers compound daily.

Why is credit card interest so high compared to other loans?: Credit cards are unsecured, revolving debt with no collateral, which issuers price with higher rates than secured loans like mortgages or auto loans.

Calculate how long it will take to pay off a credit card with a fixed monthly payment.

See how long paying only the minimum takes — and how much interest it costs — compared to a fixed payment.

Compare the cost of keeping a balance on your current card vs. transferring it to a promo-APR offer.