1. What is the Lighthouse EMI Calculator?

The Lighthouse Credit Card Refinance Calculator helps you estimate your monthly payments (EMI) when refinancing credit card debt using Lighthouse's methodology. It provides a clear picture of your potential monthly obligations.

2. How Does the Calculator Work?

The calculator uses the standard EMI formula:

Where:

• \( P \) — Principal amount (original loan amount)
• \( R \) — Monthly interest rate (annual rate divided by 12)
• \( N \) — Loan tenure in months

Explanation: The formula accounts for both principal and interest components of your payment, with more interest paid initially and more principal paid later in the loan term.

3. Importance of EMI Calculation

Details: Understanding your EMI helps in budgeting and determining if refinancing makes financial sense for your situation. It allows you to compare different loan offers effectively.

4. Using the Calculator

Tips: Enter the principal amount in dollars, annual interest rate as a percentage (e.g., 15 for 15%), and loan tenure in months. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: How accurate is this calculator?
A: The calculator provides a close estimate, but actual payments may vary slightly due to rounding methods or additional fees charged by lenders.

Q2: Does this include any fees or charges?
A: No, this calculates only the principal and interest components. Origination fees or other charges would be additional.

Q3: What's the benefit of refinancing credit card debt?
A: Refinancing can lower your interest rate, reduce monthly payments, and help you pay off debt faster with a structured repayment plan.

Q4: How does the interest rate affect my payment?
A: Higher rates increase your EMI significantly. Even a 1% difference can substantially impact your total repayment amount.

Q5: Should I choose a longer or shorter loan term?
A: Shorter terms mean higher payments but less total interest. Longer terms reduce monthly payments but increase total interest paid.