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What Is the Credit Card EMI Calculator?
A credit card EMI calculator is a useful tool that can help to understand how much you need to pay as interest in case you pay your credit card bill using EMIs. Credit cards are recognized widely to be among the most accessible credit instruments. They cater to individuals across income groups, offering them convenient access to credit. While you can repay your bills every month, you can also choose to convert the outstanding amount into EMI. This allows you the flexibility to pay a big amount in affordable chunks. However, this attracts interest, and it is important to understand how much you will need to pay as EMI in order to manage your credit card effectively.
You can perform this calculation manually but that would be complex and time-consuming. The credit card EMI calculator performs this complex calculation based on your inputs and accurately estimates the EMI amount.
The best thing about a credit card EMI calculator is that you can use it without incurring any charges. You can access the calculator anytime on the Angel One website
How Does a Credit Card EMI Calculator Work?
A credit card EMI calculator uses a mathematical formula based on the loan amount, interest rate, and tenure. The calculator calculates the monthly EMI amount, allowing you to plan your finances.
When selecting a loan tenure, it's crucial to understand that longer tenures result in lower EMIs but higher overall repayment amounts. In comparison, shorter tenures have higher EMIs but lower overall repayment amounts. Choose wisely based on your financial situation and goals.
What Is the Credit Card EMI Calculator Formula?
The credit card EMI calculator formula depends on three important variables: the credit amount, interest rate, and credit tenure.
The formula is mentioned below:
E = [ P X R X (1 + R)^n] / [ (1 + R)^n – 1]
E is the amount; you need to pay as monthly installments.
P is the loan amount you take using the credit card.
R is the rate of interest charged by the credit card issuing bank.
n is the tenure of the credit.
How To Use the Online Credit Card EMI Calculator?
Using the online credit card EMI calculator is very simple. There are a few steps that you must follow to compute the EMI amount.
- Enter the credit amount that you want to avail of using the credit card
- Input the loan tenure
- Input the rate of interest
The credit card EMI calculator on the Angel One website will display the EMI amount you will need to pay along with the total payable amount, principal amount and interest amount
To understand this, let's take an example. Suppose you borrow Rs. 1,00,000 using your credit card. The tenure is 1 year, and the interest rate is 13%. In this case, the calculator will display the EMI amount as Rs. 8,932.
It will also give an interest amount of Rs. 7,181 and a total amount of Rs. 1,07,181.
Benefits Of Using a Credit Card EMI Calculator
Using the credit card EMI calculator on Angel One has several benefits. Let’s have a look at some of these benefits:
- Free to use: A credit card EMI calculator is free to use. You can access and utilize the calculator anytime without incurring any costs.
- Saves time: The best thing about using a credit card EMI calculator is that it saves time. Once you add all the variables, it displays the EMIs within seconds
- Easily accessible: You can visit the Angel One website anytime and use the credit card EMI calculator.
- Transparency: Financial transparency is paramount in matters concerning finances. The credit card EMI calculator ensures complete transparency by breaking down the loan amount, interest, and EMI components.
- Accurate financial planning: Using the credit card EMI calculator, you can accurately plan your finances. It helps you budget and stay on track with repayments.
Factors Influencing the Credit Card EMI Amount
Different factors influence your credit card EMI amount. They are below:
- The credit amount: The credit you take using the credit card directly impacts your EMIs. The higher the credit, the higher your EMIs will be.
- Interest amount: Most credit cards charge a high rate of interest. A high-interest rate can impact your monthly installments.
- Tenure: You must look at the loan tenure before you apply for a credit card loan. If you want to reduce your EMIs, you can spread the loan repayment across different months.
Types Of Credit Cards Offered by Banks
Banks offer different types of credit cards. Let’s have a look at some of the most common ones:
- Travel credit card: A travel-credit card offers different kinds of travel rewards. These are best suited for people who travel frequently.
- Fuel credit card: A fuel credit card offers different cashback and discounts on your fuel spending. Different brands offer a fuel credit card, and the benefits can be availed at any gas station.
- Rewards credit card: These cards offer different reward points on minimum spending. The collected reward points can be used to access discounts on various categories or can be exchanged for brand vouchers.
- Business credit card: Business cards are offered to business owners to meet their work-related expenses.
- Lifestyle credit card: These cards offer discounts and cashback on several products and services.
A credit card EMI calculator is an online tool that helps calculate your monthly EMIs for your credit card loan, along with the total payable amount, principal amount and interest amount.
You can visit the Angel One website to use the credit card EMI calculator. Enter the amount of credit you want to take using your credit card. Next, enter the loan tenure and the interest rate for your loan.
Yes, the credit card EMI calculator is free to use. You can visit the Angel One website and use it at any time of the day.
Yes, the credit card EMI amount is inclusive of GST. You can see the applicable GST on your annual credit card statements.
No, the EMI amount for a credit card loan cannot be modified. The EMI amount is determined based on the loan amount, interest rate, and loan tenure, and it remains fixed throughout the loan repayment period.