How to Calculate Credit Card EMIs

How to Calculate Credit Card EMIs In this blog we know about an interesting topic. today we learn to calculate the EMIs of credit card easily with the help of these articles.

In these days many people want to take a credit card for many purposes like shopping, online payments, etc.

Credit cards are issued by banks and financial institutions allowing the user to make purchases and pay for various services by borrowing money from them. Apart from providing the much-needed alternative to cash, credit cards also offer you benefits in the form of rewards, cash back, interest-free period and much more.

The demand for credit cards in the Indian market is growing rapidly and hence leading banks have launched plenty of credit card options for the customers to choose from.


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The main reason why people wish to take a credit card is so that they can convert their high-value purchases into easy Equated Monthly Instalments (EMI). So, what are these EMIs? EMIs are used to pay off both interest and principal on your borrowing so that over a period of time the entire loan is paid off in full.

Credit card EMIs can be calculated manually or using an excel sheet to cross-check whether your bank is charging you fairly. Credit card EMIs can be calculated manually or using an excel sheet to cross-check whether your bank is charging you fairly.

For calculating credit card EMIs, you will need the following Information-

P = Principal

R = Rate of Interest (this should be the monthly rate and not the APR)

T = Tenure of the Loan

For calculating the EMIs in Excel Sheet, you should use this formula- PMT (rate, per, PV). The result will come in negative or red highlight, which indicates that it is cash outflow.

The formula to be used for manual calculation is

EMI = [P x R x (1+R)^N]/[(1+R)^N-1]

Here, P stands for the principal loan amount, R is the interest rate per month and N is the number of monthly installments. Using the above formula, you will get the same result as you got from the excel sheet.

However, both these calculations are lengthy and complicated. A simpler method is to use our EMI calculator to find out the EMI that you would have to pay per month using the above three components- Principal, Rate of Interest and Tenure of Loan.


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Calculate Via EMIs Calculator Website

Shubham Kumar Tiwari

My name is Shubham Kumar Tiwari and I am a blogger from India. In my blog, you know tech news, mobiles, gadgets, internet, software, hosting, money earning related news and blogs.

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