What is the Excel formula for calculating the number of years to pay
off a credit card debt and what information do I need to calculate it?
I do not want an amortization schedule, just the number of years it
will take to pay off the credit card with the way I am paying it now
(payment, intrest rate, etc.) |
Request for Question Clarification by
maniac-ga
on
17 Sep 2005 15:56 PDT
Hello Snowballs,
A couple questions:
- Is the interest added at the same rate as payments (e.g., both monthly)?
- Will you be charging more to your card while paying it off?
Varying answers to both of these can affect the answer.
Thanks
--Maniac
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Clarification of Question by
snowballs-ga
on
18 Sep 2005 02:46 PDT
Hello Maniac,
Assume that I will not be charging more on the credit card while it
is being paid off, and iterest will be added at the same rate as
payment (monthly). I am using the current formula:
=ROUND(NPER((E10/12), H10*-1, G10),2)
Where: E10 = is the APR
H10 = the monthly payment (*-1 to make it a negative number)
G10 = the current balance due
and the result is the number of months to pay off the card,
but I want to make sure that this information gives a correct answer.
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Request for Question Clarification by
maniac-ga
on
18 Sep 2005 12:20 PDT
Hello Snowballs,
As already noted, the result you get is the number of months
(payments) - divide by 12 if you need years.
I suggest you make a slight change to read
=ROUND(0.5+NPER((E10/12), H10*-1, G10),2)
to round up to account for the final payment (a portion of the regular payment).
Since you provided basically the answer I would have provided, I
suggest you close the question (so you won't be charged) unless you
want to pay for the advice provided.
--Maniac
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