Interest calculation Help please

Simon7685

I haven't been waiting for this to happen but inevitably there comes a time when you need to use one of those cards you have tucked away inside your wallet and will need to spread the repayment over time.

Although I intened to make that time as short as possible, probably 5 or 6 months. Can someone help me out with a formula I can use in Excel to calculate what the interest I am likely to pay will be please.

The details will be £500 purchase, which I will put on my Capital One card which is 29.9% APR. A lot, I know but better than Aqua and Vanquis.

I can never remember how to work the rates out on these things!

bengal-stripe

Simon7685 wrote: »

Although I intened to make that time as short as possible, probably 5 or 6 months. .......The details will be £500 purchase, which I will put on my Capital One card which is 29.9% APR.

At 30% £500 borrowed will cost you about 41 pence per day (or 8 pence for every £100). Interest will be charged from the day the debt is charged to the account to the day it is repaid.

If you pay off £100 every months, interest will be 41 pence for the first 20 or 30 days, then 33 pence after your first £100 hit the account etc.

This is only approximate as the due interest will added, taking the balance slightly higher. Of course it also presume that you don't make additional purchases before the balance is paid off.

Simon7685

There woulsn't be any further spending on the card until it was repaid. I have been trying to do some calculations for this scenario, can someone tell me if I am on the right lines.

Statement date 27th of the month, which would be the purchase date of £500. Usual payment date is 23rd of each month.

27th Spend of £500
At next statement there would be a payment of £75 already made.
So interest would be something like;
500 - 75 = 425
425 x 0.299 / 365 x 53 days = 18.45 interest new balance = 443.45
(53 days being from date of purchase to date of payment the following month)
Next Month;
443.45 - 75.00 = 368.45
368.45 x 0.299 / 365 x 53 = 16.00 interest new balance = 384.45
Next Month;
384.45 - 75 = 309.45
309.45 x 0.299 / 365 x 53 = 13.44 new balance = 322.89
and so on...........

glenbois

credit ccard calculator:-

http://www.moneysavingexpert.com/cards/minimum-repayments-credit-card