How to Calculate Credit Card Interest in Excel?

A credit card is a payment tool that is used widely. This tool allows us to borrow money from the bank. You pay for items or services which we want and then pay it back with an additional amount of ‘interest’. However, the annual interest rate of the credit card might be high. Although many people would like to reduce the amount of money from their debts. We cannot ignore that they constitute financial assistance for their customers.

How to calculate credit card interest in excel? Accordingly, before creating a worksheet in excel, make sure you gather all the financial details of your credit card. Those constitute the current balance, minimum payment amount, and annual interest rate. This information you can find on the top or bottom of the account statements.

However, nowadays bank provides the services through their official websites. the client can verify the information through the websites.

How to Make a Credit Card Interest Sheet On Excel?

Microsoft Excel is a useful tool to solve and calculate any kind of mathematical operations. Also, it can manage the interest of your credit card. Except, sometimes you can feel it a hard job to calculate it on excel, but if you use the correct formula there will be nothing leave problematic.

Make sure you have the information given above and follow some steps which are given right after this paragraph. This article would be solving the user’s questions; How to calculate credit card interest in excel?

• Step 1: Open Excel and write descriptions in the cells

Set up your spreadsheet. First, set up some headers. Which will help you to know what the different columns are about. This will make anyone know quickly what the different columns are referring to.

There will be five titles in the worksheet. Title one would be ‘Interest’ in the A1 cell. The second title would be ‘Period’ in B2 cell. The title third would be ‘Total’ in cell C1. The fourth title would be ‘Card Value’ in the D1 cell. And lastly, title five would be ‘Payment’ in the E1 cell.

• Step 2: Enter your monthly rate

Enter your monthly interest rate in cell A2. You can figure out the number by dividing by 12 your annual interest rate. This annual rate should be present on your credit card statement or online at your company’s website. If you are unable to find it then contact your credit card company for help.

• Step 3: Enter the number of months

Enter the precise amount of months or period. For which you desire to count the interest payment of that particular period. However, the interest payment would go in the B2 cell. Enter the number ”0” for the first month of card origin month. For the first month, enter ”1”.

• Step 4: Enter your total payments

Enter the total summation of your payments for your credit card in cell C2. For example, if you are planning to pay your card off in four years then multiply the number of years and 12, which means 4×12. Then you will get an exact number of how many times you have made a payment of your credit card.

• Step 5: Enter the amount owed

Type the amount of money you have spent on your credit card. Enter that amount in cell D2. For example, if you have spent $ 40,000 and hit the credit card limit of $ 40,000, you can max out the limit. If you are not quite sure about the balance of your credit card then check your most recent statement. In the aftermath of it visit your credit card company in case of any trouble.

• Step 6: Use the interest formula

Enter the command ”ISPMT (A2,B2,C2,-D2)” in the cell E2. This built-in formula of Excel allows you to calculate the amount of interest you paid or will pay during a certain time.

Important things to Check in Your Credit card Statment

Additionally, reading a credit card statement helps users to keep track of the spending, reward points, and transaction charges. And other things related to credit card statements must be kept on track. A credit card statement is a detailed summary of your credit card usage. This includes payments, credit balance, purchases, etc. Many credit cardholders only keep an eye upon the particular amount without even looking rest of the statement. In fact, imagine you are paying for the purchases that you never have placed.

In fact, reading the statement of the credit card helps you to spot doubtful transactions. However, there is a section of interest changes feature in the statement. Of course, it is a beneficial thing for you. There are certain points below which have to keep in mind:

• Statement due dates
• Payment due dates
• Grace period
• Minimum amount due
• Total amount due
• Billing cycle
• Details of transactions
• Credit limits
• Reward points’

However, this article was about; How to calculate credit card interest in Excel? Understanding the various heads in your credit card statement will help you to manage it more efficiently. And it is equally important to be safe with your transactions.