What Is a Credit Card Daily Periodic Rate?

How Do You Calculate a Daily Periodic Rate?

You can calculate a card's daily periodic rate by finding its annual percentage rate (APR), which is the same as its interest rate. The APR will be on your card's monthly statement, or you can check it by logging into your credit card account online.

Once you have your card's APR, divide it by 360 or 365 (review your cardholder agreement to see which option your card issuer uses) to find the daily periodic rate. For example, if your card's APR is 26% and your card issuer uses a 365-day calculation, the card's daily periodic rate is 0.071%.

Knowing the daily periodic rate can help you understand and calculate how much interest accrues on a credit card balance. For instance, a card with a 0.071% daily periodic rate and a $5,000 balance will accrue $3.55 of interest (5,000 x 0.00071 = 3.55) at the end of the day.

Can You Lower a Card's Daily Periodic Rate?

Many credit cards have a variable APR, which means your rate may go down or up when interest rates change. As a result, your daily periodic rate might automatically decrease if interest rates go down. Some card issuers may also send out temporary interest rate offers, which could give you a lower (or zero) percent rate on your purchases. But you don't have any control over when these happen.

If you want to get a lower rate on your own, you could try calling your card issuer and asking if it could lower your rate. They might agree if you're a longtime customer or your income or credit has significantly improved since you first opened your card. Or, if you're asking for a lower rate because you're struggling to afford your payments, some card issuers have hardship programs that may temporarily lower your interest rate or minimum payment.

How Can You Save on Credit Card Interest?

Most credit cards offer cardholders a grace period, an interest-free period between the end of your billing cycle and your bill's due date. If you pay your statement balance in full each month, you won't pay any interest on your purchases.

However, the grace period gets rescinded when you revolve or carry a balance. Now, your revolved balance and new purchases will start to accrue interest daily based on your daily periodic rate.

When you think or know you might carry a balance and want to minimize your interest payments, you could:

• Open and use a low-interest credit card. Even if the card doesn't offer many rewards, you might save more on interest than you'd earn in rewards anyway.
• Pay down the credit card with the highest APR first. The approach is called the debt avalanche method, and it helps you minimize your overall interest payments as you pay down multiple debts.
• Look for cards with 0% APR offers. When you know you have large purchases coming up, getting a new card that offers an introductory 0% APR on purchases might make sense. You can then pay down the balance without paying extra interest during the promotional period.
• Use a balance transfer card. Another option could be to open a balance transfer credit card that offers an introductory 0% APR on balances you move to the card. While you may need to pay a balance transfer fee, you could end up saving more on interest than you pay in fees.

Best 0% intro APR cards of 2026

Compare cards from our partners with 0% intro APR offers on balance transfers, purchases or both.

Offers from our partners

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(884)Rated 4.57 out of 5 stars, 884 reviews

91%

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Citi Double Cash^® Card

Intro APR:0% for 18 months on Balance Transfers

Ongoing APR:18.49% - 28.74% (Variable)

Rewards:

2% (cash back)

Earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases. To earn cash back, pay at least the minimum due on time. Plus, earn 5% total cash back on hotel, car rentals and attractions booked with Citi Travel.

Annual Fee:$0

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Blue Cash Everyday^® Card from American Express

Intro bonus:

As High As $200 Cash Back. Find Out Your Offer.

You may be eligible for as high as $200 cash back after spending $2,000 in purchases on your new Card in the first 6 months. Welcome offers vary and you may not be eligible for an offer. Cash back is received as Reward Dollars, redeemable for statement credit or at Amazon.com checkout. Terms Apply.

Intro APR:0% on Purchases and Balance Transfers for 15 months

Ongoing APR:19.74%-28.74% Variable

Rewards:

1% - 3% (cash back)

Earn 3% cash back at U.S. supermarkets, 3% cash back on U.S. online retail purchases, 3% cash back at U.S. gas stations, on eligible purchases for each category on up to $6,000 per year in purchases (then 1%). Cash back is received in the form of Reward Dollars that can be redeemed as a statement credit and at Amazon.com checkout.

Annual Fee:$0

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(751)Rated 4.54 out of 5 stars, 751 reviews

89%

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Citi^® Diamond Preferred^® Card

Intro APR:0% for 21 months on Balance Transfers and 12 months on Purchases

Ongoing APR:16.74% - 27.49% (Variable)

Rewards:

N/A

Annual Fee:$0

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(187)Rated 4.56 out of 5 stars, 187 reviews

91%

would recommend

Wells Fargo Active Cash^® Card

Intro bonus:

$100

Earn a $100 cash rewards bonus after spending $500 in purchases in the first 3 months.

Intro APR:0% intro APR for 12 months from account opening on purchases and qualifying balance transfers

Ongoing APR:18.74%, 24.74%, or 28.74% Variable APR

Rewards:

2% (Cash Rewards)

Earn unlimited 2% cash rewards on purchases.

Annual Fee:$0

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Blue Cash Preferred^® Card from American Express

Intro bonus:

As High As $300 Cash Back. Find Out Your Offer.

You may be eligible for as high as $300 cash back after spending $3,000 in purchases on your new Card in the first 6 months. Welcome offers vary and you may not be eligible for an offer. Cash back is received as Reward Dollars, redeemable for statement credit or at Amazon.com checkout. Terms Apply.

Intro APR:0% on Purchases and Balance Transfers for 12 months

Ongoing APR:19.74%-28.74% Variable

Rewards:

1% - 6% (cash back)

Earn 6% cash back at U.S. supermarkets on up to $6,000 per year in eligible purchases (then 1%), 6% cash back on select U.S. streaming subscriptions, 3% cash back at eligible U.S. gas stations and on transit (including taxis/rideshare, parking, tolls, trains, buses and more) purchases and 1% cash back on other purchases. Cash Back is received in the form of Reward Dollars that can be redeemed as a statement credit and at Amazon.com checkout.

Annual Fee:$0 intro annual fee for the first year, then $95.

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Terms Apply

(129)Rated 4.74 out of 5 stars, 129 reviews

96%

would recommend

American Airlines AAdvantage^® MileUp^® Card

Intro APR:0% for 15 months on Balance Transfers

Ongoing APR:19.74% - 29.74% (Variable)

Rewards:

2x (Miles per dollar)

Earn 2 AAdvantage^® miles for each $1 spent at grocery stores, including grocery delivery services. Earn 2 AAdvantage^® miles for every $1 spent on eligible American Airlines purchases. Save 25% on inflight food and beverage purchases when you use your card on American Airlines flights

Annual Fee:$0

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(54)Rated 4.5 out of 5 stars, 54 reviews

BankAmericard^® credit card

Intro APR:0% Intro APR for 21 billing cycles for purchases, and for any balance transfers made in the first 60 days

Ongoing APR:15.24% - 26.24% Variable

Rewards:

N/A

Annual Fee:$0

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(42)Rated 4.62 out of 5 stars, 42 reviews

Bank of America^® Unlimited Cash Rewards credit card

Intro APR:0% Intro APR for 15 billing cycles for purchases, and for any balance transfers made in the first 60 days

Ongoing APR:17.74% - 27.74% Variable

Rewards:

1.5% (cash back)

1.5% cash back on all purchases

Annual Fee:$0

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See all our best 0% intro credit cards for 2026.

You also might be able to save money by taking out a debt consolidation loan to pay off credit card balances. While you'll have to pay interest on the loan, you may qualify for a lower rate than your credit card's APR. Plus, the loans often have a fixed interest rate, fixed monthly payments and a predetermined repayment period that can make repaying the loan simpler than paying off a credit card.

Check Your Credit Card Offers

The daily periodic rate doesn't matter much when you pay your bill in full and don't pay interest. When that's the case, a rewards credit card might make the most sense. But if you're carrying or think you might need to carry a balance soon, a low-interest card or a promotional interest rate could be the best choice.

No matter the type of card, your credit score can impact the decision, and you can check your credit for free with Experian. Then, use Experian's free comparison tool to compare different credit card offers and get matched with cards based on your unique credit profile.