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Calculating interest on credit card debt.

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Calculating interest on credit card debt.

I have 3 cards I PIF the day after they close (62 closings). So, I have no experience on having debt or paying/calculating interest. I am interested to learn more though. Could someone explain it too me and potentially provide me a forumal for excel that would calculate the interest in the given situtations?

 

Old Debt - $0

New Balance - $450

Paid - $25

APR- 22.24%

 

Old Debt - $300

New Balance - $400

Paid - $400

APR - 14.99%

 

Thanks for your time!

Message 1 of 5
4 REPLIES 4
New Contributor

Re: Calculating interest on credit card debt.

if you pif the interest will not apply.

Starting 7/15 ex-410 tu-487 eq-476
Current 11/4 ex-530 tu-566 eq-582
Goal 740
Message 2 of 5
Valued Contributor

Re: Calculating interest on credit card debt.

I would think figuring out a rough estimate for one months interest would be fairly simple.  Take the average daily balance, multiply by the interest rate and divide by 12. 

 

This article gives a more exact formula:

https://www.nerdwallet.com/blog/credit-cards/credit-score/how-credit-card-interest-calculated/

 

There are also many interest rate calculators you can find on the web:

https://www.google.com/?gws_rd=ssl#q=credit+card+interest+calculator

 

Message 3 of 5
Super Contributor

Re: Calculating interest on credit card debt.


@sirenvii wrote:
if you pif the interest will not apply.

This guy has hit the nail on the head. 

 

Once a month you will get a statement for each credit card.  At the top of that statement will be an "Amount Owed."  It sounds you always pay that amount on the statement in full (PIF).  So it doesn't matter what your interest rates are, since you are paying in full.

 

Are you trying to figure out how much interest you will pay if you stop paying in full?  If, that is, you only pay a part of that "Amount Owed" and carry the rest onto the next statement?

Message 4 of 5
Senior Contributor

Re: Calculating interest on credit card debt.

you can make a copy of this and steal the formulas (or use it as your own)

 

if you enter an interest rate in the "promo" (promotional rate) column it will use that, otherwise it will use the interest rate you entered in the "rate" cloumn

 

https://docs.google.com/spreadsheets/d/1LY-nMFRAXS8yViHCjBrgjuoaPtL8g4jG0jPwg582UkM/edit#gid=0

 

click (file/make a copy) and your copy will be editable


Message 5 of 5
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