# How to Calculate Average Daily Balance Now

To calculate average daily balance (ADB) on your credit card is an important part of calculating your credit card interest rate. Your average daily balance is the average amount you carry on your credit card each day during the billing cycle. This can be calculated manually or automatically by your credit card company. Either way, calculating it yourself is easy, and it will help you predict how much your credit card bill will be at the end of the month before your bill arrives.

## What is an average daily balance?

An ADB is calculated using the amount listed on your credit card statement divided by the number of billing cycles in the current billing period. An example, if your balance is \$10,000 but the billing cycle for the current month is 1, your ADB is \$10,000 divided by 12. A monthly average balance is also calculated by dividing the amount by 12. Get your free credit score Below are two methods for calculating your ADB, manual and automatic: 1. Manual: Enter the amount on your credit card in the corresponding boxes.

## Here’s an Example

• Ending amount for Day 1: \$1000.00
• Ending amount for Day 15: \$2000.00 (because you bought some things worth \$1000 on this day)
• Ending amount for Day 20: \$1500.00 (because you paid off \$500 on this day)

The above example would really look like this:

Day Balance
1 \$1000.00
2 \$1000.00
3 \$1000.00
4 \$1000.00
5 \$1000.00
6 \$1000.00
7 \$1000.00
8 \$1000.00
9 \$1000.00
10 \$1000.00
11 \$1000.00
12 \$1000.00
13 \$1000.00
14 \$1000.00
15 \$2000.00
16 \$2000.00
17 \$2000.00
18 \$2000.00
19 \$2000.00
20 \$1500.00
21 \$1500.00
22 \$1500.00
23 \$1500.00
24 \$1500.00
25 \$1500.00
26 \$1500.00
27 \$1500.00
28 \$1500.00
29 \$1500.00
30 \$1500.00
Total \$40,500.00

Now divide the total (\$40,500.00) by the total number of days (30) and you get an ADB of \$1,350.00 which is what your credit card company will calculate your credit card interest against.

To make your life easier, I have created an average daily balance calculator.