1. What is EMI?

EMI (Equated Monthly Installment) is the fixed payment amount a borrower makes to a lender at a specified date each calendar month. It includes both principal and interest components.

2. How Does the Calculator Work?

The calculator uses the standard EMI formula:

Where:

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

Explanation: The formula accounts for compound interest over the loan period, calculating a fixed monthly payment that pays off both principal and interest.

3. Understanding Credit Card Loan EMI

Details: Credit card loans typically have higher interest rates than other loan types. Understanding your EMI helps in budgeting and comparing different credit options.

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

Q1: How does APR affect my EMI?
A: Higher APR increases both your EMI and total interest paid. Even small rate differences can significantly impact total repayment amount.

Q2: Should I choose a longer or shorter tenure?
A: Shorter tenure means higher EMI but less total interest. Longer tenure reduces EMI but increases total interest paid.

Q3: Are there any prepayment charges?
A: Some credit cards charge fees for early repayment. Check your card's terms before making extra payments.

Q4: What if I miss an EMI payment?
A: Late payments typically incur penalty fees and may increase your interest rate. Repeated misses can damage your credit score.

Q5: How accurate is this calculator?
A: This provides standard EMI calculation. Your actual EMI may vary if your card issuer uses different calculation methods or adds fees.