EMI Calculation Formula:
From: | To: |
This calculator helps you determine the Equated Monthly Installment (EMI) for a loan taken to pay off a credit card balance transfer, including any transfer fees and interest charges.
The calculator uses the standard EMI formula:
Where:
Explanation: The formula calculates the fixed payment amount required each month to pay off the loan (principal + interest) over the specified term.
Details: Understanding your EMI helps in financial planning, comparing loan options, and ensuring the monthly payments fit within your budget before committing to a balance transfer loan.
Tips: Enter the transferred balance, transfer fee percentage, annual interest rate, and loan tenure in months. All values must be positive numbers.
Q1: What is a balance transfer fee?
A: This is typically a percentage (often 3-5%) of the amount being transferred, charged by the new credit card company.
Q2: How is the monthly interest rate calculated?
A: Divide the annual interest rate by 12. For example, 18% annual rate becomes 1.5% monthly (18 ÷ 12 = 1.5).
Q3: Does a longer tenure reduce EMI?
A: Yes, but you'll pay more interest overall. Shorter tenures have higher EMIs but lower total interest.
Q4: Are there any prepayment penalties?
A: Some lenders charge fees for early repayment. Check your loan terms before making extra payments.
Q5: How accurate is this calculator?
A: It provides a close estimate, but actual loan terms may vary based on lender policies and any additional fees.