1. What is EMI Calculation?

The EMI (Equated Monthly Installment) calculation determines your fixed monthly payment for a credit card loan used for car purchase. 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 as decimal)
• \( N \) — Loan tenure in months

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

3. Importance of EMI Calculation

Details: Understanding your EMI helps budget for car purchases, compare loan offers, and assess affordability before committing to a credit card loan.

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

Q1: Why use credit card for car loan?
A: Credit cards may offer convenience or rewards, but typically have higher interest rates than auto loans - best for short-term financing.

Q2: How does APR affect my payment?
A: Higher APR increases both your monthly payment and total interest paid over the loan term.

Q3: What's better - shorter or longer tenure?
A: Shorter tenure means higher payments but less total interest. Longer tenure reduces monthly payments but increases total cost.

Q4: Are there prepayment penalties?
A: Some credit cards may charge fees for early payoff - check your cardholder agreement.

Q5: Can I negotiate my credit card APR?
A: Sometimes - especially with good credit history. Contact your card issuer to discuss options.