EMI Formula:
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EMI (Equated Monthly Installment) is the fixed payment amount a borrower pays to a lender each month for a specified number of months to repay a loan. This calculator helps estimate monthly payments when using a credit card to pay a mortgage.
The calculator uses the EMI formula:
Where:
Explanation: The formula calculates the fixed monthly payment that would pay off the loan with interest over the specified term.
Details: Understanding your EMI helps in financial planning, budgeting, and assessing affordability when using credit cards for mortgage payments.
Tips: Enter the principal amount, annual percentage rate (APR), and loan tenure in months. All values must be positive numbers.
Q1: Is it advisable to pay mortgage with credit card?
A: Generally not recommended due to higher interest rates, but this calculator helps evaluate the costs if you choose this option.
Q2: What's the difference between APR and interest rate?
A: APR includes both interest rate and other loan charges, giving a more complete picture of borrowing costs.
Q3: How does loan tenure affect EMI?
A: Longer tenures reduce EMI but increase total interest paid. Shorter tenures increase EMI but reduce total interest.
Q4: Are there prepayment penalties?
A: Some credit cards may have prepayment penalties. Check your card terms before making extra payments.
Q5: What if I miss an EMI payment?
A: Late payments typically incur fees and may increase interest rates. Consistent misses can damage credit score.