Paying down Credit Cards (Include Interest In Goals)

I noticed you can setup a "Goal" to pay off your credit cards which is great.

Say you have $1,000 and you want to pay it off in 12 months that comes out to $83.33 a month.

Here is my issue with this.  It does not take into account interest.  Would it be possible to add a way to include the interest rate on our cards and to take that into account when creating a goal to pay off a card?  If you have 10% interest the $83.33 will not cover the entire amount in 12 months.  You would need to pay $87.92.

I know, I could figure it out myself and bump the amount up if I wanted too.  Also I would probably round it up to $90.00 but not everyone will do that.

8replies Oldest first
  • Oldest first
  • Newest first
  • Active threads
  • Popular
  • Hi VoltaicShock !

    There isn't a way to enter the interest rate for your credit card, but YNAB will automatically adjust your goal once the interest hits your account. So, if your goal requires you to budget $83.33 to pay it off in time, once the interest is entered and raises the balance on your card, the goal will change and tell you the new balance you need to budget to stay on track.

    Try entering your interest charge in your account and see how your goal changes. :)

    If you still have questions, don't hesitate to let me know!

    Like 3
    • Faness at YNAB 

      Thank you!  That is good to know.  I am just used to other online calculators that let you input all of this.

      Like 1
  • Not totally relevant to your Q - but just in case your paying off multiple credit cards (or anyone coming into this thread is)....

    There are a couple of decent "snowball" payment calculators out there that will do debt pay off calculation a bit more dynamically than YNAB currently can (i.e. I have $500 / m to pay off, across these 5 balances, what's the best way to utilise it).

    They'll both calculate % interest rates too in their breakdown.


    May or may not be useful!

    Like 3
    • BritishMuseum 

      Thanks!  I have seen these before.

      The thing is I usually pay one off in full each month and paying down the others.  I like the rewards I get on the cards (cash back).

      I will take a look at these and see what it says is best for me.

      Like 1
  • Adding a loan payoff calculator into the goals section seems like an easy add-on. I tried adding my mortgage, to YNAB, but since it doesn't calculate interest I'm better off sticking with my spreadsheet for that one. 

      • satcook
      • satcook
      • 7 mths ago
      • 1
      • Reported - view

      Budget Conquistador I update my mortgage once a month with the interest. Takes maybe a minute

      Like 1
      • Budget Conquistador
      • Ready for the next big adventure
      • Khaki_Screwdiver.8
      • 7 mths ago
      • 1
      • Reported - view

      satcook you made me think about it some more. I could just add the  total expected interest, and then the payoff date and progress bar would be accurate. You're right, easy enough.

      Like 1
    • Budget Conquistador This is coming to YNAB! It wasn't an easy add-on, but I think you're going to enjoy it. 😁

      Like 1
Like2 Follow
  • Status Answered
  • 7 mths agoLast active
  • 8Replies
  • 2449Views
  • 5 Following