Adjusted Balance Finance Charge Calculation

The adjusted balance method of calculating your finance charge uses your previous balance less any payments and credits made during the billing cycle. New charges are not factored into the adjusted balance. The periodic rate is applied to the adjusted balance to calculate the finance charge.

APR = 14%

Periodic rate = 1.17%

Days in billing cycle = 30

Previous balance = $1000

Payment 16th day = $100

Charge 20th day = $50

Ending balance = $950

Adjusted balance = $900

Finance charge = Adjusted balance * periodic rate

= $900 * .0117

= $10.53