How this calculation works
Interest equals average daily interest-bearing balance × annual rate × days ÷ 365. Add entered statement fees and subtract a payment at the end, floored at zero.
A worked example
An average R10 000 interest-bearing balance at 22% for 30 days produces R180.82 estimated interest, before fees.
Assumptions & limitations
- Use the average daily balance on which interest is actually charged. Grace periods, different purchase/cash advance rates, daily compounding and mid-period payments require your issuer’s actual statement calculation.
