# Previous Balance Method.

The Previous Balance Method is the most common method used by credit card issuers to calculate interest charges. Under this method, your interest charge is based on the balance on your statement from the previous month. This balance is often referred to as the "average daily balance."

##### What is the average daily balance method?

The average daily balance method is a way of calculating your monthly credit card interest charges. To calculate your average daily balance, your credit card issuer will take the beginning balance of your account for each day of the billing cycle and add any new charges and payments made during that day. The issuer will then divide that sum by the number of days in the billing cycle. This figure is then multiplied by the monthly interest rate to calculate your monthly interest charges. What is remaining balance from previous bill? Assuming you are asking about a credit card bill:

Your previous balance is the balance from your last statement, plus any new charges and minus any payments or credits made since your last statement. What is the method of computing the account balance in the card for Capital One? The account balance on a Capital One credit card is the outstanding balance on the account minus any credits or payments that have been applied to the account.

#### What method is used to calculate monthly finance charges the first major credit card?

The method used to calculate monthly finance charges on the first major credit card is the average daily balance method. This method takes the average daily balance of the account during the billing cycle and multiplies it by the monthly periodic rate.

##### What's the adjusted balance method?

The adjusted balance method is a way of calculating your monthly credit card payment. It takes into account the outstanding balance on your credit card at the beginning of the billing period, minus any payments or credits that you made during the period. This method is generally the most favorable to the cardholder, as it results in the lowest minimum payment.