Credit Card EMI Calculator

Converting a card purchase to EMI is not the same as taking a loan, and the gap between the advertised rate and what you actually pay is where the money goes. Two charges never appear in the headline: a one-time processing fee, and GST at 18% levied on the interest as well as on that fee. This works out the real total and the rate it corresponds to, so you can compare it honestly against any other way of paying.

How to use it

1. Enter the purchase amount and the rate the bank quoted.
2. Add the tenure and the processing fee from the offer screen.
3. Say whether it was offered as no-cost EMI.
4. Read the true rate, not the advertised one.

Examples

• 60,000 at an advertised 15% over 6 months with a 199 fee really costs 18.98% a year
• The same purchase as no-cost EMI still costs 712 more than the sticker price

Frequently asked questions

Is no-cost EMI really free?

Not quite, and the gap is small but real. The bank does charge interest; the retailer rebates it as an upfront discount, so the instalments add up to the sticker price. But GST at 18% is charged on that interest and is not rebated, and the processing fee stands. On a 60,000 purchase over six months that is a few hundred rupees. You also normally forfeit reward points on an EMI conversion, which is a second cost nobody mentions. It is a good deal, not a free one.

Why is GST charged on the interest?

Interest on a loan is exempt, but a card EMI conversion is treated as a service the bank provides, so 18% GST applies to the interest component and to the processing fee. It does not apply to the purchase amount, which was already taxed at the point of sale. This is why the effective rate always exceeds the advertised one: the rate describes only the interest, and the tax sits on top of it.

Is card EMI cheaper than a personal loan?

Compare the effective rate here against the personal loan calculator's figure, not the advertised rates, since only one of the two carries GST on its interest. Card EMI is usually quicker to arrange and needs no paperwork, which is worth something for a small amount over a short period. For a large amount over a long one, a personal loan is normally cheaper. And for anything you could clear this month, paying the bill in full costs nothing at all.

Can I cancel an EMI conversion later?

Usually yes, by foreclosing it, but banks commonly charge a foreclosure fee of around 3% of the outstanding amount plus GST on that fee, and the processing fee you already paid is not refunded. That makes converting a purchase you might want to clear early an expensive way to keep your options open. Decide before converting, not after.