What's the formula to work out minimum repayment

I think what the OP is asking is for a formula giving the payment he would need to make each month to clear the debt by the end of the 0% period?

eg. With a 10 months 0% BT card and a 10K debt. he would need to repay £1,000 a month to clear the debt in 10 months.

To pay off the total debt during the 0% promotional period, just divide the debt by the number of months at 0% to get the monthly payment you need to make.

The formula I use in excel is below, to work out the minimum monthly payment:

This is for 1% or £25, which ever is largest, and generally assumes no further spend, i.e. the balance just runs down at each min monthly payment.

=if(rounddown(((c4/100)*1),2)<25,25,rounddown(((c4/100)*1),2))

Where 'C4' is the previous months balance, '*1' is the % min payment and '25' is the smallest min payment.

Breakdown:

if
(rounddown(( [rounded down value, some companies may have this differently, but it will make pennies of a difference regardless]
(c4/100)*1) [works out 1% of the balance]
,2) [gives the 1% value in 2 decimal places]
<25 [checks if this value less than 25]

,25, [if less than 25, then 25 is the true value, and is the minimum payment]
rounddown(((c4/100)*1),2)) [if more than 25, then this is the false value, and displays this value]


Hopefully this is not too confusing, and useful if you use excel.

logie48 wrote: »

The formula I use in excel is below, to work out the minimum monthly payment:

This is for 1% or £25, which ever is largest, and generally assumes no further spend, i.e. the balance just runs down at each min monthly payment.

=if(rounddown(((c4/100)*1),2)<25,25,rounddown(((c4/100)*1),2))

Where 'C4' is the previous months balance, '*1' is the % min payment and '25' is the smallest min payment.

Breakdown:

if
(rounddown(( [rounded down value, some companies may have this differently, but it will make pennies of a difference regardless]
(c4/100)*1) [works out 1% of the balance]
,2) [gives the 1% value in 2 decimal places]
<25 [checks if this value less than 25]

,25, [if less than 25, then 25 is the true value, and is the minimum payment]
rounddown(((c4/100)*1),2)) [if more than 25, then this is the false value, and displays this value]


Hopefully this is not too confusing, and useful if you use excel.

Wow !
I just use MAX(25,C4*0.01) :rotfl:

msallen wrote: »

Wow !
I just use MAX(25,C4*0.01) :rotfl:

That just highlights my limited knowledge of excel !! :rotfl: