I have a web developer creating a minimum repayment credit card calculator and need a formula to use for calculating the time to clear debt based on inputs of balance, APR, minimum repayment per month (%) and minimum repayment per month (£).
I currently have the below formula but need to adjust it to account for the check to see which minimum repayment to use (£ or %) to occur every month rather than just at the start of the calculation.
We are trying to replicate the minimum repayment calculators seen on MSE and Which.
Please help!
a = credit card balance
b = repayment amount per month
c = credit card APR
e = current credit card monthly rate
h = total interest paid
k = minimum % required per month
m = minimum amount required per month
p = amount payable based on %
q = time to clear debt
e = (POWER(((c/100)+1),0.08333)-1)x100)%
p=k x a
Using minimum payment:
Formula for time to clear debt (q):
IF(p>m, q = log (-p/ea-p)/log(1+e)), q = log (-m/ea-m)/log(1+e)))