Periodic Rate Finance Charge Formula

APR: Annual Percentage Rate
DBC: Days in Billing Cycle
ADB: Average Daily Balance
PRFC: Periodic Rate Finance Charge


If your APR is 7.65%*, you have a 29-day billing cycle, and an average daily balance of $6,000, the formula would be as follows:

*7.65% = 7.65/100 = .0765

Here’s how you would type the above equation into Google: (7.65%/365)*29*6000

Here is a link to a spreadsheet you can use to perform this interest rate calculation. The file has a Microsoft Excel extension and should open with Microsoft Excel. However, I created the file using the free program OpenOffice Calc.

I used a demo of MathType 6.0c to create the above expressions. I then took screen shots of the images, cropped what I wanted and saved them in JPEG format using IrfanView.

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