Credit Card Calculator for

American Express

Introduction to American Express Credit Card EMI Calculators

American Express offers a variety of credit cards to meet different financial needs. Cardholders can repay the amount within a specified time. Failing to repay within this window can result in penalties or late fees.

The total credit card outstanding amount can also be converted into Equated Monthly Installments (EMIs) for clearing the dues without additional fees.

For a better understanding of the monthly obligations, the American Express Credit Card EMI Calculator allows users to calculate their monthly payments, facilitating money management and planning repayments effectively.

What is an American Express Credit Card EMI Calculator?

The American Express Credit Card EMI Calculator is an online financial tool that calculates the EMI required for a credit card outstanding. It simplifies difficult calculations, providing a clear picture of the monthly financial commitment involved in repaying the credit card's outstanding balance through EMIs. It also enables you to compare different amounts, interest rates, and tenures to obtain the best deal.

How to Use the American Express Credit Card EMI Calculator?

Follow these steps to use the American Express Credit Card EMI Calculator:

1. Go to the ‘American Express Credit Card EMI Calculator’ section.
2. Enter the amount.
3. Choose the repayment tenure.
4. Select the interest rate.

Your EMI calculation will be displayed on the screen.

Factors Affecting American Express Credit Card EMI

• The total amount you want to convert to monthly installments or the total due.
• The interest rate charged by the credit card issuer.
• The repayment duration or EMI tenure.
• The credit history of the borrower.

Benefits of Using an American Express Credit Card EMI Calculator

• Allows borrowers to manage their monthly budget by displaying the precise EMI amount required.
• The EMI calculator simplifies difficult calculations.
• Avoids human errors while calculating the EMI amount.
• Enables users to measure different offers by modifying amounts and interest rates.
• Shows how extra payments or prepayments affect the repayment tenure and total interest paid.

American Express Credit Card Interest Rates and Tenure

Interest Rate

The American Express credit card has an annual interest rate of 36%.

Repayment Period

The American Express Credit Card allows you to return your outstanding due over 3 to 24 months.

Penal Interest

For failing to make the minimum payment on your American Express Credit Card by the due date three times a year, you will be charged a monthly interest rate of 3.99% on the outstanding balance. The first overdue day will result in a one-time penalty fee of ₹500 or 30% of the EMI payable– whichever is lower.

Understanding American Express Credit Card EMI and Its Components

In an American Express credit card EMI, the total payment is split into two components:

• Interest Component: Covers the cost of borrowing based on the outstanding due balance. The interest component is initially larger when the outstanding balance is higher. As you make repayments, the outstanding amount drops, lowering the interest cost and its component in the EMI.
• Principal Component: This is the part of the EMI that repays the outstanding balance of the credit card. Initially, this portion is smaller because the outstanding principal is high, resulting in higher interest payments. Over time, as the outstanding balance reduces with each payment, the principal component of the EMI increases.

Step-by-Step Guide to Calculate American Express Credit Card EMI

The EMI for each type of loan is calculated using this formula:

E = [P × R × (1+R)^n] / [(1+R)^n – 1]

Where:

• E - This is the EMI amount.
• P – Total transaction amount or outstanding credit card balance converted into EMIs.
• R – The interest rate charged by the credit card issuer.
• n – Duration for which you will pay the EMIs.

Common Mistakes to Avoid While Using American Express Credit Card EMI Calculator

• Enter the exact amount you want to convert into EMIs on your American Express credit card, the interest rate, and repayment duration to avoid incorrect EMI calculations.
• Try different tenures and credit card balance amounts to reach an EMI that won’t be a financial burden as per your monthly budget.
• Do not ignore the additional charges or fees levied by the card issuer on EMI conversion of credit card dues.
• Check the prepayment or foreclosure conditions for credit card EMIs.

Conclusion

Using an American Express Credit Card EMI Calculator allows you to make better financial planning. The calculator not only informs you how much money you need to pay each month but also helps you choose an affordable EMI amount by converting a large outstanding balance.