Banks and credit card companies use various conventional methods such as the Average Daily Balance method, the Previous Balance method, or the Adjusted Balance method to calculate credit card interest charges. Online credit card calculators can help you know the amortization schedule of your credit card’s repayment and the EMIs (equated monthly instalments) that you must pay on a monthly basis. You can use these free, online tools to plan for your card’s repayment and avoid any late payment fees or an accumulation of interest.
What is a credit card calculator?
A credit card calculator, also called a credit card EMI calculator, helps customers calculate the value of their future EMIs before signing up for a credit card. You can also know the fees that will be applied to your credit card transactions and the amortization schedule for your credit card. Credit card calculators also help you check the total interest amount for your credit card. Banks and credit card companies help customers access several financial calculators to help them plan for their repayment, such as minimum payment calculators, credit card interest calculators, and credit card limit calculators. A credit card calculator, however, has the specific function of helping you calculate your credit card EMIs.
Benefits of online credit card calculators:
Here are the key benefits of using online credit card calculators –
- They are free to useand available online: One of the major advantages of credit card calculators is that they can be used online, and do not charge any fee for their services. Most major banks and credit card companies host these tools on their sites.
- You can understand all your interest expenses using credit card calculators:You can know how much you pay on different rates and tenures using a credit card EMI calculator. You can also see the amortization schedule to know how your EMI contributions will repay the principal amount and the interest.
- Credit card calculators can help you compare credit cards online:This is one of the key advantages of credit card calculators. You can use these calculators to compare two or more credit cards before choosing one. You can compare future EMI amounts and interest rates and choose the more affordable credit card.
Tips to estimate monthly payments using a credit card calculator:
You can follow three steps to efficiently estimate monthly payments using a credit card calculator –
- Account for your monthly expenses: Budgeting regularly can help you know the exact amount that you spend on daily expenses. If you know these expenses well, you can plan for the repayment of your credit card better.
- Enter the required details:To use a credit card calculator, you must enter the loan amount, interest rate, and the loan tenure.
- Analyse the amortization table that the calculator gives you to plan for your repayment:Be sure to compare the amortization tables of multiple credit cards before choosing a card.
You can easily estimate monthly payments and repay your credit cards on time using an online credit card calculator. Be sure to use a calculator that is hosted on an official bank/credit card company’s website.
