# Credit Card Payoff Calculation

1. ## Credit Card Payoff Calculation

Hey folks,
I hope all is well! I'm having a difficult time coming up with a solution to the problem below. There are 3 credit cards, with 3 different rates, and 3 different principle balances. Is there a fomula which will show me how much to pay on each card (budget \$1000) to pay the least amount of interest?
Payoff.xlsx

Any help would be appreciated!

Thanks!

2. ## Re: Credit Card Payoff Calculation

If I were doing this, I would create a formula as shown below.

Data Range
 A B C D E F G 1 Balance Rate Min Payment Interest Formula in Col E Budgeted amount to pay each month 2 Card 1 \$9,438.41 6.24% \$138.00 49.079732 =B2*(C2/12) \$1,000.00 3 Card 2 \$4,292.01 18.99% \$114.00 67.9210583 =B3*(C3/12) 4 Card 3 \$7,146.77 15.24% \$162.00 90.763979 =B4*(C4/12)

Based upon this, I would make a minimum payment to the cards with the smaller two monthly interest amounts and pay the balance of the \$1000 to the higher interest amount card. I would run this calculation each month and make the payment accordingly.

Alan

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