Credit Card EMI Calculator

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Credit card calculator

A payment card which is given to the users or better known as the card holders is known as a credit card. Moreover, permission is given to the card holder to pay for the goods & services only when the card holder agrees to pay for these goods & services at a later date. On the other hand, a credit card is essentially a card which is issued so that the card holder can borrow funds & this happens to be generally at the point of sale.

Credit card – EMI payment Calculator

Principal(P): Rs
Interest rate(r): %

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Apart from this, a credit card is generally issued to the card holder by a financial institution which are basically the banks. Another aspect of a credit card is that as these cards charge interest, & thus they are mostly put in use for the short – term financing only. However, one has to remember the fact that the interest is charged after a month the purchase has been made. Furthermore, the borrowing limit is also pre – set as per the credit rating of the individual.

Use of a credit card calculator

A credit card calculator will be useful for all as people will get a chance to check not only the duration but also the interest or for that matter the monthly payment. For the details which are to be provided here such as the interest rate, balance or the minimum payment, you can look at the credit card statement.

How to use a credit card calculator?

To make use of a credit card calculator, you would be required to enter the credit card balance in the 1st field & this is to be followed by the interest rate apart from the minimum payment before clicking on the tab that reads calculate. You may also select the payback duration to have a clear cut idea.

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Which formula is to be used to calculate the credit card payments?

Essentially, the formula which is made use of in the credit card calculator is similar to the EMI payment formula & hence, the formulae which will be applicable for the credit card EMI payments have been mentioned here as well. An individual may use any one of the below given formulae for the EMI payments as far as the credit cards are in question.

Credit card – EMI payment formula

\(E\,=\, P \, \times r\, \times \frac {(\,1 \, +\, r\, )^{n}}{((\, 1 \, +\, r\,)^{n}\,-\, 1)}\)

We can see that in the above equation, EMI is represented by E while P stands for the principal loan amount. In addition to this, the rate of interest or the interest rate is represented by r & finally, the loan term or the tenure or the duration is denoted by n.

Credit card EMI loan payment formula

\(M\, =\, P\, (\frac{J}{\,1 \, -\, (\, 1 \, + \, J\, )^{-n}})\)

Furthermore, the credit card EMI loan payment calculation formula has been stated above & as per this formula, M happens to be the payment amount, while P is the principal or the amount of money which has been borrowed from the entity, J is the interest rate (not annual interest rate) & total number of payments is n.