How Does Daily Periodic Rate Work? (2026 Credit Card Math)
The daily periodic rate (DPR) is your APR divided by 365. For a 22.76 percent APR card, the DPR is 0.06236 percent per day.
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Daily periodic rate on credit cards, the math
Reviewed by CC Payoff Calc Editorial Team. Last verified May 13, 2026.
The daily periodic rate (DPR) on a credit card equals your APR divided by 365 (or 360 for some retail cards), expressed as a decimal applied to your balance each day. For the Federal Reserve Q1 2026 average credit card APR of 22.76 percent, the DPR is 0.2276 divided by 365, which equals 0.0006236 (or 0.06236 percent per day). The issuer multiplies DPR by your average daily balance each day to compute that day’s interest. Across the billing cycle, the daily figures are summed and posted as one Finance Charge line under Regulation Z 12 CFR 1026.7. The DPR appears in your Schumer box on the back of every cardholder agreement. Here is the full math, the denominator conventions, and worked examples by APR.
Plan
How DPR is calculated
The DPR formula is simple:
DPR = APR / N
Where N is 365 (for most major issuers) or 360 (for some retail and store cards).
Examples at various APR levels:
| APR | DPR (365 day) | DPR percent | Daily interest on $5,000 balance |
|---|---|---|---|
| 14.00 percent | 0.0003836 | 0.03836 percent | $1.918 |
| 18.00 percent | 0.0004932 | 0.04932 percent | $2.466 |
| 22.76 percent (Fed avg Q1 2026) | 0.0006236 | 0.06236 percent | $3.118 |
| 24.00 percent | 0.0006575 | 0.06575 percent | $3.288 |
| 28.99 percent (cash advance typical) | 0.0007942 | 0.07942 percent | $3.971 |
| 29.99 percent (penalty APR typical) | 0.0008216 | 0.08216 percent | $4.108 |
The DPR is disclosed in the Schumer box under Regulation Z 12 CFR 1026.5a, which requires issuers to disclose all rates and fees in a standardized format.
How DPR is used to compute the finance charge
The standard credit card interest formula:
Finance charge = DPR x ADB x days in cycle
Where ADB is the average daily balance calculated by summing each day’s ending balance and dividing by the number of days in the cycle.
The CFPB consumer interest explainer walks through the same formula. The legal basis is Regulation Z, 12 CFR 1026.7(b).
Worked example: 22.76 percent APR, $4,000 ADB, 30 day cycle.
- DPR = 0.0006236
- Daily interest = 0.0006236 x $4,000 = $2.494
- Cycle finance charge = $2.494 x 30 = $74.82
That $74.82 posts to your statement as Finance Charge.
The 365 vs 360 denominator
Most major U.S. credit card issuers (Chase, Citi, Capital One, American Express, Discover, Bank of America, Wells Fargo) use 365 as the DPR denominator. A small number of retail and store cards (Synchrony, Comenity) historically use 360.
The 360 denominator produces a slightly higher DPR for the same APR:
- 22.76 percent APR with 365: DPR = 0.0006236
- 22.76 percent APR with 360: DPR = 0.0006322
The difference is 86 micro-percent per day, or roughly $4 to $5 more interest per year on a $5,000 balance. The OCC’s Comptroller’s Handbook on Credit Card Lending describes both conventions as accepted industry practice. The cardholder agreement specifies which applies.
Calculator
Worked finance charge calculations by APR
The pillar APR interest calculator computes the finance charge for any combination of APR, balance, and cycle length. A 30 day cycle on a $5,000 ADB:
| APR | DPR | Daily interest | Cycle finance charge |
|---|---|---|---|
| 14.00 percent | 0.0003836 | $1.918 | $57.54 |
| 18.00 percent | 0.0004932 | $2.466 | $73.98 |
| 22.76 percent | 0.0006236 | $3.118 | $93.54 |
| 24.00 percent | 0.0006575 | $3.288 | $98.64 |
| 26.99 percent | 0.0007395 | $3.697 | $110.91 |
| 28.99 percent (cash advance) | 0.0007942 | $3.971 | $119.13 |
| 29.99 percent (penalty) | 0.0008216 | $4.108 | $123.24 |
A 1 point APR increase translates to roughly $4 per year per $1,000 of average balance. Sliding from 22.76 to 29.99 percent (penalty APR scenario) adds roughly $354 in annual interest on a $5,000 balance, just from the rate change.
DPR by balance size
For a 22.76 percent APR card (DPR = 0.0006236), daily interest scales linearly with balance:
| Average daily balance | Daily interest |
|---|---|
| $500 | $0.312 |
| $1,000 | $0.624 |
| $2,500 | $1.559 |
| $5,000 | $3.118 |
| $10,000 | $6.236 |
| $25,000 | $15.590 |
Across a 30 day cycle, doubling the balance doubles the interest, every time. Across a year, the daily numbers compound under the daily compounding mechanism (see the daily compounding page) to produce an effective annual rate of roughly 25.55 percent on a 22.76 percent stated APR.
Mixed APR scenarios
When a card has multiple balance categories (purchases at 22.76 percent, cash advance at 28.99 percent, balance transfer at 0 percent intro), the issuer computes finance charge for each separately. A combined balance:
| Category | Balance | APR | DPR | 30 day finance charge |
|---|---|---|---|---|
| Purchases | $3,000 | 22.76 percent | 0.0006236 | $56.13 |
| Cash advance | $500 | 28.99 percent | 0.0007942 | $11.91 |
| Balance transfer (intro) | $4,000 | 0 percent | 0.0000000 | $0.00 |
| Total | $7,500 | (blended) | (mixed) | $68.04 |
The Finance Charge line on the statement totals all category-level charges. Cash advances and standard balance transfers usually have NO grace period; intro 0 percent rate makes the math zero during the promo even without grace.
The CFPB cash advance guide and the balance transfer FAQ confirm these rules.
Strategies
Find your DPR on every statement
Every periodic statement under Regulation Z 12 CFR 1026.7(b)(6) must disclose the periodic rate used to compute the finance charge. The statement typically reads:
- “Daily Periodic Rate: 0.06236 percent (corresponding ANNUAL PERCENTAGE RATE: 22.76 percent)”
The DPR is the smaller number; the APR is the larger annualized figure. Both are required to be displayed.
Use DPR to verify the statement finance charge
You can validate the issuer’s posted Finance Charge by multiplying DPR by ADB (also disclosed on the statement) by days in the cycle. If the numbers do not match, contact the issuer.
Worked verification: Statement shows DPR 0.0006236, ADB $4,250, cycle length 30 days, Finance Charge $79.51.
- DPR x ADB x days = 0.0006236 x $4,250 x 30 = $79.51
The numbers tie. If they did not, you have a billing error right under 12 CFR 1026.13, which gives you 60 days to dispute in writing.
Use DPR to estimate cost of new balance categories
If you are considering a cash advance, multiply the cash advance DPR by the amount times your typical revolve days to estimate cost.
A $500 cash advance at 28.99 percent APR held for 60 days:
- DPR cash advance = 0.0007942
- 60 day interest = 0.0007942 x $500 x 60 = $23.83
- Plus cash advance fee 3 to 5 percent = $15 to $25
- Total cost: $38.83 to $48.83 for a 60 day $500 loan
The all-in APR on that 60 day cash advance is roughly 47 to 58 percent. The CFPB cash advance guide confirms this is one of the most expensive consumer borrowing options.
Compare DPR to alternative product rates
A 22.76 percent credit card DPR (0.0006236 daily) translates to roughly 25.55 percent effective annual under daily compounding. Common alternatives:
- Personal loan (prime credit): 8 to 18 percent APR, monthly compounded, effective 8.3 to 19.5 percent
- HELOC: 8 to 12 percent APR, monthly compounded, effective 8.3 to 12.7 percent
- 0 percent intro APR balance transfer: 0 percent for 12 to 21 months, 3 to 5 percent transfer fee
The debt consolidation calculator compares these paths. For most cardholders carrying balances on standard APR credit cards, any of these alternatives is significantly cheaper.
Resources
Authoritative sources
- Consumer Financial Protection Bureau, How credit card interest is calculated
- Regulation Z, 12 CFR 1026.7(b)(6) (Periodic statement rate disclosure)
- Regulation Z, 12 CFR 1026.13 (Billing error rights)
- Regulation Z, 12 CFR 1026.5a (Schumer box disclosures)
- OCC Comptroller’s Handbook, Credit Card Lending
- Federal Reserve G.19 Consumer Credit
Sibling questions
- How is credit card interest calculated?
- Does credit card interest compound daily?
- What is the average daily balance method?
- Does credit card interest accrue daily or monthly?
Related tools
- Credit card APR interest calculator for daily finance charge math
- Credit card payoff calculator for full payoff timelines
- 0 APR balance transfer calculator
FAQ
Frequently asked questions
What is the daily periodic rate on a credit card?
The daily periodic rate (DPR) is the interest rate applied to your balance each day. It equals your APR divided by 365 (some retail cards use 360). For the Federal Reserve Q1 2026 average credit card APR of 22.76 percent, the DPR is 0.06236 percent per day. The issuer multiplies DPR by your average daily balance to compute that day’s interest charge. The DPR appears in your Schumer box and on every periodic statement under Regulation Z (12 CFR 1026).
How do I calculate the daily periodic rate?
Divide your APR by 365. APR is the annual percentage rate displayed in the Schumer box (typically 14 percent to 29.99 percent for U.S. consumer cards). For 22.76 percent APR, DPR equals 0.2276 divided by 365, which equals 0.0006236 or 0.06236 percent per day. For 24 percent APR, DPR equals 0.0006575. For 29.99 percent APR (penalty rate), DPR equals 0.0008216.
Is the daily periodic rate the same as APR?
No. APR is the annual rate; DPR is the per-day rate. DPR equals APR divided by 365. Both appear in your Schumer box. The DPR is what the issuer actually applies to your balance each day to calculate daily interest. The APR is the disclosed annual figure but is never directly multiplied by your balance in the finance charge formula.
Why do some cards use 360 instead of 365 for DPR?
Historical banking convention. Some retail co-branded cards (Synchrony, Comenity) and a small number of bank cards use 360 days as the year, which produces a slightly higher DPR for the same APR. For 22.76 percent APR, the 360 day DPR is 0.06322 percent vs 0.06236 percent under 365. The difference produces slightly more interest over a year. The denominator is disclosed in the cardholder agreement.
What is the monthly periodic rate on a credit card?
Monthly periodic rate is APR divided by 12. For 22.76 percent APR, the monthly periodic rate is 1.897 percent. Some credit cards historically used the monthly periodic rate with the average daily balance to compute interest, but daily periodic rate is the standard today on U.S. consumer cards. The monthly periodic rate produces slightly less interest than daily compounding at the same APR.
How this fits with the four strategies
The card-stack calculator above models avalanche, snowball, balance transfer, and hybrid strategies in parallel. Switch the strategy pill to see how the numbers move for your specific input.
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Quick answers
What is the daily periodic rate on a credit card?
The daily periodic rate (DPR) is the interest rate applied to your balance each day. It equals your APR divided by 365 (some retail cards use 360). For the Federal Reserve Q1 2026 average credit card APR of 22.76 percent, the DPR is 0.06236 percent per day. The issuer multiplies DPR by your average daily balance to compute that day's interest charge. The DPR appears in your Schumer box and on every periodic statement under Regulation Z (12 CFR 1026).
How do I calculate the daily periodic rate?
Divide your APR by 365. APR is the annual percentage rate displayed in the Schumer box (typically 14 percent to 29.99 percent for U.S. consumer cards). For 22.76 percent APR, DPR equals 0.2276 divided by 365, which equals 0.0006236 or 0.06236 percent per day. For 24 percent APR, DPR equals 0.0006575. For 29.99 percent APR (penalty rate), DPR equals 0.0008216.
Is the daily periodic rate the same as APR?
No. APR is the annual rate; DPR is the per-day rate. DPR equals APR divided by 365. Both appear in your Schumer box. The DPR is what the issuer actually applies to your balance each day to calculate daily interest. The APR is the disclosed annual figure but is never directly multiplied by your balance in the finance charge formula.
Why do some cards use 360 instead of 365 for DPR?
Historical banking convention. Some retail co-branded cards (Synchrony, Comenity) and a small number of bank cards use 360 days as the year, which produces a slightly higher DPR for the same APR. For 22.76 percent APR, the 360 day DPR is 0.06322 percent vs 0.06236 percent under 365. The difference produces slightly more interest over a year. The denominator is disclosed in the cardholder agreement.
What is the monthly periodic rate on a credit card?
Monthly periodic rate is APR divided by 12. For 22.76 percent APR, the monthly periodic rate is 1.897 percent. Some credit cards historically used the monthly periodic rate with the average daily balance to compute interest, but daily periodic rate is the standard today on U.S. consumer cards. The monthly periodic rate produces slightly less interest than daily compounding at the same APR.