A technique for calculating finance charges (such as in a bank account, charge account, or credit card account) in which no interest is charged if the balance is paid off within a certain time period. In this method the charges to be paid are only for the amount outstanding after the grace period. For example, if a credit card holder pays $75 of the $100 the card was used for within the 15 day grace period, charges are incurred only on the remaining $25.