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Credit Card Payoff Calculation

  1. #1
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    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!
    ~I'm a man with a plan~

  2. #2
    Forum Moderator alansidman's Avatar
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    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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