How interest is calculated

Interest on a Wirex Credit is straightforward. You are charged a Monthly Interest rate on your principal — the amount you originally borrowed. Interest never accrues on top of itself.

Monthly Interest rate and daily accrual

Your Monthly Interest rate is the percentage charged on your Credit principal each month. Rather than applying the full monthly charge in one go at the end of the month, the equivalent amount is added to your Accrued Interest every day.

Each day, a small portion of your monthly interest is calculated and added to your Accrued Interest balance. At the end of the month, whatever has accrued is added to your outstanding balance.

A simple example

Say you borrow $1,000 and your Monthly Interest rate is 5%.

The key thing to note: interest is always calculated on your original principal of $1,000 — not on $1,050, not on any fees. The amount never compounds.

What is Accrued Interest?

Accrued Interest is the running total of interest that has built up on your Credit so far in the current month. You can see it in the app on your Credit details screen. It resets to zero at the start of each new month once it has been added to your outstanding balance.

When does interest stop?

Interest stops accruing the moment you repay your Credit in full. Repaying also closes the Credit and releases your collateral back to your account.