0

I'm playing around in Excel attempting to get the total months to pay off a credit card. I'm not looking to pay off by a certain date. I just want to know how long it will take me to pay off what I currently own. Adjusting the monthly payment from minimum amount due, to adding a few extra hundred dollars to watch the months come down.

I have the APR, Monthly Min Due %, and the Balance, and I know I can just take the total balance and divide that by my monthly amount and that will give me the total months, if I had 0 interest and no more charges.

But what I am looking for is how to include the APR into the calculation. What is the formula where I don't have to make a giant spread sheet with multiple rows showing each months principle balance and pay off etc..? I just want to be able to plug in my monthly amount I want to pay, and watch the months go up or down.

1

Use can use the NPER function to calculate the number of periods until payoff given a constant payment amount:

Balance   1,000
Rate      5%
Payment   100
NPER      10.23557252    =NPER(5%/12,100,-1000)

Note that if you divide the APR by 12 to get a monthly rate, NPER will give you the number of months until payoff.

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.