Credit Card Rewards Calculator

• Carrying a balance on your credit card erodes the value of any "rewards" that might be earned by using the card.


• Use this calculator to guage the cost of paying interest on a credit card balance against the benefit of earning rewards.


• In the first field, enter the percent value of the basic reward your credit card pays. Typically this is 1% or 2%. (Air mile rewards are usually valued between 1% and 2% as well.)


• Next enter you credit card expenses for a typical month. Some credit cards offer a higher rebate percent for specific items such a gas or groceries; enter this percent together with an estimate of the monthly qualified charges.


• Finally, enter the dollar value of the credit card balance you typically carry together with the APR rate(%)for your credit card.


• The calculator assumes that the monthly balance you carry remains relatively constant. If you let this balance grow, the net value of any rewards is diminished further.


• The Credit Card Calculator script is availalble here for free distribution or use on financial websites.