How to Calculate Credit Card Minimum Payments in Excel
The payment due is the minimum amount that is required to pay on a credit card. The amount of this payment depends upon the outstanding account balance. If you live paycheck to paycheck and carry a significant balance on your credit card, it would be important to estimate the minimum payment to make sure you can afford it by the due date. Missing credit card payments negatively affect your credit history and result in late fees. The mathematical functions built into Microsoft Excel allow you to program the due payment calculation and obtain the required amount instantly.
- Difficulty:
- Easy
Instructions
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Creating an Excel File
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1
Log on to your user account in Windows 7Vista and launch Microsoft Excel. Press "Ctrl-N" on the keyboard to create a new Excel worksheet.
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2
Right-click on the cell "A1" and click on "Format Cells." Select the tab "Number," choose the category "Currency" and click "OK." Repeat this procedure for the following cells: "A2," "B2" and "C2."
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3
Right-click on the cell "B3" and click on "Format Cells." Select the tab "Number," choose the category "Currency." Type "0" in the field "Decimal places" and click "OK."
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4
Study your credit card Terms and Agreement. The minimum payment is typically calculated as a fixed amount (for example, $15) or a percent, usually one to four, of the new account balance, whichever amount is greater. Also, late and/or over-limit fees may be added.
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5
Enter the fixed amount (see Step 4), for instance, "15," in the cell "A1," and the percent, for example, "2," in the cell "B1."
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6
Click on the cell "B3" in the worksheet and press the key "=" on the keyboard. Type the following string--"(MAX(A1,A2*B1/100))+B2+C2"--and press "Enter." The "MAX" function returns the largest value out of two or more numbers.
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7
Press "Ctrl-S." Type a file name and click "Save" for saving the file on your computer.
Calculating the Minimum Payment
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1
Open Microsoft Excel and press "Ctrl-O." Browse your computer and open the file created in Section 1.
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2
Enter the account balance in the cell "A2." Note that the account balance can be found out by calling the customer service (toll-free number on the back of your card) or accessing credit card information online.
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3
Enter the late fee and/or over-limit fee in the cells "B2" and "C2" respectively only if those fees are applicable in the current billing cycle. Otherwise, enter "0" instead of the fee amount.
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4
Read the minimum amount due in the cell "B3."
Example 1. The balance of $2,356.87 (cell "A2") with no fees results in the minimum payment (cell "B3" ) of $47.
Example 2. The balance is $331.23 (cell "A2") and no fees give rise to the minimum payment (cell "B3" ) of $15.
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1
Tips & Warnings
Section 1 is a one-time procedure. Once the Excel file is created, go directly to Steps in Section 2.
Late fee and over-limit fee amounts are given in the credit card agreement.
Do not alter the cell "A1" and "B" unless the credit card terms are changed.
