APR in plain English
APR stands for annual percentage rate. A simple monthly estimate divides APR by 12, then applies that monthly rate to the balance. Actual card issuers may use daily balance methods, so statement results can differ.
Simple example
At 24% APR, a rough monthly rate is 2%. A $5,000 balance could generate about $100 of interest in a month before payments, fees, or balance changes.
Why minimum payments feel slow
If a large part of your payment goes to interest, less money reduces the principal. Paying more than the minimum can reduce both payoff time and total interest.
Use the calculator
Run a payoff estimate with the Credit Card Payoff Calculator.
Important note
This guide is a simplified educational explanation and is not credit, lending, financial, tax, legal, or accounting advice.