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**APR**divided by365, the number of days in a year. Similarly, the

**monthly**periodic rate is the

**APR**divided by 12.

Likewise, is APR charged monthly?

Though **APR** is expressed as an annual rate, creditcard companies use it to calculate the interest **charged**during your **monthly** statement period.

**APR**combines fees paid upfront with interestpaid every month. It does this by dividing the fees over the futurelife of the

**mortgage**. In any month, the interest payment,plus the upfront fees allocated to that month, divided by the loanbalance at the end of the preceding month, equals the

**APR**.

Considering this, how is the APR calculated on credit card?

To do so, divide your **APR** by 365, the number ofdays in a year. At the end of each day, the **card** issuer willmultiply your current balance by the daily rate to come up with thedaily interest charge. So at the end of the month, the beginning$1,000 balance becomes $1013 when interest charges are applied at15% **APR**.

**If** you **pay** in full every month: **APR**doesn't matter **When** you **pay** your credit card balance infull and on **time** in a given month, two things happen that**make** your interest rate irrelevant: There's no carried-overbalance on which the card issuer **can charge** interest. You**get** a grace period on purchases in the nextmonth.