Finance charges can be calculated in different ways. Your account statement describes the method that applies to you. In general, finance charges are based on one of the methods below.

Average daily balance
Many credit card companies use this method. The credit card company totals your balance each day during the billing period, adds these daily balances together and divides by the number of days in the period.

Ending balance
The credit card company may use your ending balance for the billing period. If so, any purchases and payments during the billing period are included.