#Microsoft excel debt payoff spreadsheet how to#
#Microsoft excel debt payoff spreadsheet plus#

#Microsoft excel debt payoff spreadsheet how to#

How to calculate the minimum payment on credit card?

#Microsoft excel debt payoff spreadsheet plus#

The calculator above allows for two lines of credit, and therefore calculation of the interest also spreads on two tracks, that is the calculation of interest on the balance on purchases plus interest calculation on the cash balance, which is usually much higher. + (Closing balance day 30 * (APR/365))Ĭalculation of the monthly interest charges with this method will depend on the number of days within a billing cycle, changes in daily balance and APR. Monthly Interest = (Closing balance day 1 * (APR/365)) +. This is a sum of the daily balances divided on the number of days within the given charging cycle to get an average daily balance, which is then multiplied by an APR divided on the number of cycles within a year which is usually 12. There are a few ways to calculate an interest on the credit cards, but most commonly use is the Average Daily Balance method. Methods of Calculating Interest Average Daily Balance Let's say that the interest is compounded daily and APR is 16.9% than EAR will look like this EAR=((1+16.9%/365)^365)-1 and will be 18.41% or if the interest is compounded monthly then EAR=((1+16.9%/12)^12)-1 and will be 18.27%.

The formula to calculate EAR is: EAR=((1+APR/N)^N)-1 where N is the number of compounding periods. This explains the fact as to why your interest differs from month to month.ĮAR (Effective Annual Rate) is a more direct reference for the one-year rate of interest. The most common way used to calculate your interest is a daily compounding of the interest based on daily closing balance. How to calculate Interest on balances of the Credit Card? What is APR and EAR?ĪPR (Annual Percentage Rate) is a rate provided to the consumer for any balance borrowed from Credit Card. Instructions on how to use this calculator provided within a calculator itself, in the form of links to the topics and also as popup comments and are always available as you go along. The spreadsheet will also introduce you to the methods of a PPI (Payment Protection Insurance) deductions and the effect of your PPI on the balance of a credit card and the interest.ĭetailed payments schedules and charts provide comprehensive information and schedules for all, calculated interest, minimum payments, additional payments, principal and PPI where applicable.

The calculator also lets you enter the constant additional monthly amount, that can be paid as an addition to the minimum monthly payments you make or to make less frequent payments along with minimum payments instead, to see how those payments can affect the time of pay off. This all will help in getting the answer to the question of how long it takes to pay off your credit card balance by making only minimum payments. This credit card pay-off calculator for excel is a pretty simple spreadsheet that can solve for minimum monthly payments, for a time to pay off, for total interest as a sum of both interest on cash balance and balance on card purchases. will not and can not be held liable for any damages or loss caused by use of this calculator. You should seek the advice of qualified professionals regarding your Debt and Credit Card Repayments. Interest of your credit facilities is usually variable and therefore all calculation are only estimates and may not be appropriate to your unique financial situation. Disclaimer - This calculator and information on this page is for educational and illustrative purposes only and not in any way meant to provide financial advise.