1. What is EMI Calculation?

EMI (Equated Monthly Installment) is the fixed payment amount a borrower pays to a lender each month for a specified number of months. This calculator helps determine the monthly payments when using a credit card to pay a mortgage.

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 calculates the fixed monthly payment that would pay off the loan over the specified period, including both principal and interest components.

3. Importance of EMI Calculation

Details: Understanding your EMI helps in financial planning, assessing affordability, and comparing different credit options when considering using a credit card to pay a mortgage.

4. Using the Calculator

Tips: Enter the principal amount, annual interest rate (APR), and loan tenure in months. Ensure all values are positive numbers for accurate results.

5. Frequently Asked Questions (FAQ)

Q1: Is it advisable to pay mortgage with credit card?
A: Generally not recommended due to high interest rates, but this calculator helps understand the costs if you choose this option.

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

Q3: What if I make additional payments?
A: Extra payments reduce principal faster, decreasing total interest and potentially shortening the loan term.

Q4: Are there fees not included in this calculation?
A: Yes, credit cards may have additional fees, balance transfer charges, or penalties not reflected here.

Q5: How accurate is this calculator?
A: It provides standard EMI calculation but actual terms may vary based on lender policies and additional factors.