How to use this calculator
- Enter the product price and the number of EMIs.
- Enter the bank’s interest rate and processing fee from the EMI terms.
- Enter the discount you would get by paying in full today, if any.
Frequently asked questions
Is no-cost EMI really free?
Usually not. The bank still charges interest; the shop only gives you a discount equal to that interest. On a ₹60,000 purchase over 6 months at 16%, the hidden interest is ₹2,703, and you pay 18% GST on it — ₹487 — on top of the EMIs.
Why does my card statement show interest on a no-cost EMI?
Because the bank does charge interest. The discount from the shop is given at the start and lowers the loan amount, so the EMIs still add up to the product price. The interest and the GST on it appear on each statement.
What is the biggest hidden cost?
Often the discount you lose. Many shops give a cash, UPI or bank-offer discount only when you pay in full. With a ₹2,000 discount given up, this offer costs ₹2,721 extra in all — like a loan at 16% a year. Without that discount it costs ₹721 extra.
Is a longer no-cost EMI better?
The EMI is smaller, but the hidden interest is bigger, so the GST on it goes up. Over 12 months instead of 6, GST on the interest comes to ₹881 instead of ₹487.
When is no-cost EMI a good choice?
When there is no discount for paying in full, the processing fee is small or waived, and you pay every EMI on time. A missed EMI brings late fees and card interest that cost far more.