Credit Card Calculator

Credit Card Calculator 

Credit cards are a convenient tool for managing your expenses, and they can help you save through various deals and reward points. However, if you are careless with your credit card, you can end up with unmanageable debt. So, when using a credit card, it is best to know how much debt you can afford to take and for how long. You should also determine the threshold at which your credit card debt could become excessively costly due to potential increases in credit card interest rates, especially if you have a variable interest rate. 

What are credit cards? 

Credit cards are plastic or metal provided by banks and financial institutions. You can use your credit card to pay for purchases and withdraw money from ATMs within an approved credit limit. You should pay your credit card bills periodically, typically every month. Credit cards are a tool that helps you manage your expenses. You can also use a credit card to build a credit history. Building a credit history will help you get a CIBIL™ score, which can help you get loans in the future. 

How do credit cards calculate minimum payments? 

In India, a minimum payment credit card calculator is used to calculate the minimum payment amount. You can also use the following formula to calculate this: 

Minimum payment = Minimum payment percentage X Total credit card bill 

What are credit card calculators? 

When you take a credit card and use it to make payments, you can either pay the credit card bill or convert it into a monthly EMI. A credit card calculator will calculate what your EMIs will be, what fees will apply to them, and what the amortization schedule will look like. You can also see what the total interest amount will be. You might also come across different variants such as credit card minimum payment calculator, credit card interest calculator, credit card interest rate calculator, and credit card limit calculator. 

 Some banks and financial institutions might offer custom calculators such as credit card eligibility calculators, credit card fee calculators, credit card interest calculators (per month, daily, and overall), and credit card EMI calculators with GST. 

 How do credit card calculators work? 

A credit card loan calculator will require you to put the loan amount, interest rate, and loan tenure. It will put these inputs into a formula and return the monthly EMI, the principal amount, the total interest amount, and the overall amount. Credit card calculators also function as credit card interest calculators by showing you a table of your amortization schedule. 

Formula for credit card calculator 

The credit card loan EMI calculator uses the following formula for the calculation of the EMI and the amortization schedule : 

Equated Monthly Instalments = Principal amount X Monthly interest rate X [(1 + Monthly interest rate) ^ (Number of months)/ (1 + Monthly interest rate) ^ (Number of months-1)] 

How to calculate GST on credit card EMIs? 

To calculate GST on the credit card EMIs use the following formula: 

GST = (Processing fee + Interest) X (18/100) 

How to use credit card calculators? 

You should take the following steps to calculate your monthly EMIs from credit card loans: 

1. Head to Shriram Finance’s official website 
2. Click on the credit card calculator option from the drop-down menu on the top bar  
3. Enter the loan amount 
4. Select the interest rate from the interest rate slider 
5. Select the loan tenure from the loan tenure slider 
6. If you use the credit card calculator again, you will have to refresh the amortization schedule table 

Benefits of credit card calculators? 

1. Understand the interest expenses. 

With the credit card calculator, you can understand how much interest you pay on different interest rates and tenures. You can also see the amortization schedule to comprehend how much of your EMI is going to pay the principal amount and to pay the interest.  

2. Compare credit cards 

Suppose two credit cards have different interest rates and credit-free periods. Comparing the superiority of various credits can be complex due to variations in tenure and applicable interest rates. However, you can assess the relative interest expenses with a credit card EMI calculator. 

3. Want to plan your credit card EMIs? 

You can use the credit card calculator to understand how to manage your debt. It involves deciding between an extended or a shorter tenure while elucidating the balance between interest rates and other considerations. 

Types of Credit Cards

Some of the common types of credit cards are as follows: 

1. Cash-back credit cards 

A cash-back credit card will offer a set percentage of credit used as a cash-back. 

 Travel credit cards 

Travel credit cards will offer travel benefits such as air miles and access to airport lounges. 

 Business credit cards 

Businesses can access business credit cards, and employees can use them to manage business expenses such as travel and accommodation. 

4. Secured credit cards 

Secured credit cards are issued against assets you own, typically fixed deposits. 

5. Co-branded credit cards 

Co-branded credit cards merge advantages from the issuer and a retail brand, offering the opportunity to reap dual benefits. 

How to calculate interest charges on credit cards? 

The credit card calculator can compute the interest charges on credit cards if you just input the interest rate, principal amount, and loan tenure. If you want to know how to calculate credit card interest charges on your own, you can use the following formula: 

Total interest cost = EMI X Number of months – Principal amount 

Work out your credit card repayments using EMI 

If you cannot repay your credit card bill on the due date, you can convert it to an EMI. You will need to pay interest for this facility just like you need to on a bank loan. This interest rate is typically named the monthly interest rate since credit card debt is a short-term debt. 

Conclusion 

The credit card EMI calculator is a magnificent tool to manage expenses. Its utility extends to comprehending EMIs, amortization schedules, and interest outlays. You can also use the calculator to choose between tenures and credit cards with different interest rates. It is for anyone trying to understand minimising interest expenses while benefiting from the credit facility.