FNB Credit Card Loan Calculator

EMI Formula:

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

Monthly Payment (EMI):

Total Payment:

Total Interest:

Unit Converter ▲

Unit Converter ▼

From:	To:

1. What is EMI?

EMI (Equated Monthly Installment) is the 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 (ZAR)
\( R \) — Monthly interest rate (annual rate divided by 12, in decimal)
\( N \) — Loan tenure in months

Explanation: The formula calculates the fixed monthly payment that would completely pay off the loan over its term, including both principal and interest.

3. Understanding Loan Components

Details: Your EMI consists of both principal repayment and interest payment. Early in the loan term, a larger portion goes toward interest. As you progress through the loan term, the principal portion increases.

4. Using the Calculator

Tips: Enter the principal amount in ZAR, annual interest rate as a percentage (e.g., 15.5 for 15.5%), and loan tenure in months. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: How does interest rate affect my EMI?
A: Higher interest rates increase both your EMI and total interest paid. Even a small rate difference can significantly impact your total repayment amount.

Q2: What happens if I pay more than my EMI?
A: Extra payments typically go toward the principal, reducing your total interest and potentially shortening your loan term.

Q3: Are there other charges not included in EMI?
A: This calculator shows only principal and interest. Your loan may have processing fees, insurance, or other charges not reflected here.

Q4: How can I reduce my EMI?
A: You can reduce EMI by either negotiating a lower interest rate or extending your loan term (though this increases total interest paid).

Q5: Is this calculator accurate for FNB credit cards?
A: While it uses standard EMI calculation, check with FNB for any specific terms or conditions that might affect your actual payments.