I'm a developer, and i'm building a snowball debt calculator.
I want a formula to work out what the minimum monthly repayment would be on a debt with a given interest.
And I really want to get the math spot on.
The snowball debt reduction method doesn't necessarily take into account the interest of a debt, as it recommends you pay of the smallest debt first.
However, what I want to use the minimum monthly payment for is error management on the debt calculator i'm building. So when someone is putting in a debt, they have 4 options to fill in:
- Debt name
- Total debt still owed
- Monthly payment
If they enter a debt of 20,000 with an interest of 20% APR , and a monthly payment of 1p, it obviously wont cover the minimum payment required to reduce the debt. So in this example I would want to warn the user that it wouldn't meet the criteria.
Any feedback appreciated.