Credit Card EMI Payment Calculator

EMI Calculation Formula:

\[ EMI = \frac{P \times R \times (1+R)^N}{(1+R)^N - 1} \]

Monthly Payment (EMI):

Total Payment:

Total Interest:

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1. What is EMI?

EMI (Equated Monthly Installment) is a fixed payment amount made by a borrower to a lender at a specified date each calendar month. EMIs are used to pay off both interest and principal each month so that over a specified number of years, the loan is fully paid off along with interest.

2. How Does the Calculator Work?

The calculator uses the standard EMI formula:

\[ EMI = \frac{P \times R \times (1+R)^N}{(1+R)^N - 1} \]

Where:

\( P \) — Principal loan amount
\( R \) — Monthly interest rate (APR/12)
\( N \) — Loan tenure in months
\( EMI \) — Equated monthly installment

Explanation: The formula calculates the fixed payment amount that includes both principal and interest components for each month of the loan term.

3. Understanding Credit Card Interest

Details: Credit card EMIs typically have higher interest rates compared to other loans. The interest is calculated on a monthly reducing balance basis, meaning you pay interest only on the outstanding principal each month.

4. Using the Calculator

Tips: Enter the principal amount, annual percentage rate (APR), and loan tenure in months. All values must be positive numbers (principal > 0, APR > 0, tenure ≥ 1 month).

5. Frequently Asked Questions (FAQ)

Q1: How is credit card EMI different from regular EMI?
A: Credit card EMIs often have higher interest rates and may include processing fees. Some banks offer zero-interest EMIs for specific purchases.

Q2: Can I prepay my credit card EMI?
A: Most banks allow prepayment, but may charge a prepayment penalty (usually 2-5% of outstanding principal).

Q3: What happens if I miss an EMI payment?
A: Late payments incur penalties (typically 2-3% of EMI amount) and may negatively impact your credit score.

Q4: Are there any hidden charges in credit card EMI?
A: Some banks charge processing fees (0.5-3% of loan amount) or GST on interest. Always read the terms carefully.

Q5: Is EMI better than paying minimum amount due?
A: EMI is generally better as it has a fixed repayment schedule and lower interest than revolving credit (typically 1.5-3.5% per month).