How to Calculate Credit Card Cost with Equal Monthly Payments in WPS Office Spreadsheets
Question details
The user needs to calculate the total cost of using a credit card when the same payment amount is made every month, using balance, interest rate, payment amount, fees, and payment schedule.
- Product
- WPS Office Spreadsheets
- Device & OS
- not provided
- Scenario
- The user is planning fixed equal monthly credit card payments and wants to determine the total interest or required payment amount in a spreadsheet.
- Observed behavior
- The user needs a working Excel-compatible formula for total interest or the fixed monthly payment amount based on the credit card terms.
Gather the credit card balance, annual interest rate, fixed monthly payment amount, any fees, and the planned number of months. Convert the annual rate to a monthly rate by dividing by 12 before using CUMIPMT or PMT.
Calculate total credit card interest with CUMIPMT in WPS Spreadsheets
Use this method when you know the number of months and want the total interest paid over the full payment period.
CUMIPMT returns the cumulative interest paid between two periods. For a fixed monthly payment schedule, use the entire loan period to estimate the total interest cost.
Launch WPS Office and open the spreadsheet that contains your credit card balance, rate, and term.
Enter the principal in one cell, the monthly interest rate in another, and the total number of months in a third cell.
Click an empty result cell and type =-CUMIPMT(monthly_rate, number_of_months, principal, 1, number_of_months, 0), replacing the arguments with your cell references.
Press Enter to display the total interest cost. Add this to the principal or any fees for the full credit card cost.
Find the required fixed monthly payment with PMT in WPS Spreadsheets
Use this when you need to determine how much to pay each month to clear the balance within a fixed number of months.
Calculate credit card payoff costs with WPS Office Spreadsheets
WPS Office Spreadsheets supports Excel-compatible financial functions such as CUMIPMT and PMT, so you can calculate credit card interest and equal monthly payments without buying Microsoft Excel.
- 1. Open WPS Office Spreadsheets: Launch WPS Office, click Spreadsheets, and open a blank or existing .xlsx workbook.
- 2. Enter your credit card terms: Type the balance, annual interest rate, payment amount, and number of months into separate cells.
- 3. Insert the CUMIPMT or PMT formula: Click an empty cell and enter =-CUMIPMT(rate/12, months, balance, 1, months, 0) for total interest or =PMT(rate/12, months, -balance) for the monthly payment.
- 4. Review and save the result: Press Enter to calculate the result, then save the workbook in WPS Spreadsheets or as an Excel .xlsx file.
Frequently Asked Questions
What is the difference between CUMIPMT and PMT for credit card calculations?
CUMIPMT returns the total interest paid over a specific period, while PMT returns the fixed monthly payment required to pay off the balance. In WPS Spreadsheets, use CUMIPMT when you already know the payment amount and term, and use PMT when you need to find that payment amount.
How do I convert an annual credit card interest rate for these formulas?
Divide the annual rate by 12. For example, an 18% annual rate becomes 0.18/12, or 0.015, as the monthly_rate in CUMIPMT or PMT in WPS Spreadsheets.
Does the CUMIPMT formula include annual fees or late fees?
No. CUMIPMT only calculates interest. Add annual fees, balance transfer fees, or late fees separately to the returned interest amount to get the total cost.
Why does my CUMIPMT result appear as a negative number?
Excel-compatible functions often return payments and interest as negative cash flows. In WPS Spreadsheets, add a minus sign before CUMIPMT, like =-CUMIPMT(...), to display the interest cost as a positive number.
Can I use CUMIPMT if my monthly payment changes?
No. CUMIPMT assumes equal payments and a fixed rate. For irregular or extra payments, build a monthly amortization schedule in WPS Spreadsheets and sum the monthly interest instead.
