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No-cost EMI calculator: the true cost

India: uses Indian rules and rupees

See what a “no-cost” EMI really costs you, with GST on interest, a processing fee and any cash discount you give up.

Runs entirely in your browser. Nothing you type is sent anywhere.

“No-cost” EMI still has interest. The bank charges interest. The seller gives you the same amount as an upfront discount. So your EMIs add up to the price.

But GST is charged on the interest, and on any processing fee. RBI says EMI with interest must not be shown as zero-interest.

₹
₹

For example, an instant discount you get only if you pay in full. Put 0 if none.

months
% a year

Use the rate shown at checkout or in your card’s EMI terms. It is not 0%, even in a no-cost EMI.

Upfront discount from the seller
₹
%

Type the fee before GST. 18% GST is an example from bank terms (for example SBI Card). The fee is shown on the first bill.

Extra you pay over the cash price—

Monthly EMI
—
Bank interest
—
Upfront discount
—
GST on interest
—
Fee + GST on fee
—
Total you pay
—
Cash price (price − lost discount)
—

Estimate. Your bank’s EMI schedule and card bill are final. The first month’s interest may differ by a few days.

Month-by-month schedule
MonthEMIInterestPrincipalGSTFeeYou payBalance

How to use the no-cost EMI calculator

Each month, interest is the balance still owed times the yearly rate divided by 12. The EMI pays that interest in the same month. The rest cuts the balance. Interest is never added to the balance, so there is no compounding. The simple yearly rate of the extra cost is extra divided by the cash price, times 100, times 12, divided by the number of months. It is a flat rate on the full cash price. It is not the bank’s interest rate.

  1. In a no-cost EMI, the seller cuts the price by about the interest, up front. The bank books the lower amount.
  2. You pay the same EMI each month. All EMIs add up to about the price.
  3. Each month, GST is added on that month’s interest.
  4. The processing fee, and GST on it, come once.
  5. If you lose a cash discount by taking the EMI, that is also a cost.

Understanding your result

Each month, interest is the balance still owed times the yearly rate divided by 12. It is paid that month and is not added to the balance, so there is no compounding. The simple yearly rate is the extra you pay, divided by the cash price, times 100, times 12, divided by the number of months. It is a flat rate. It is not the bank’s interest rate. Your card bill is final.

Sources

Sources checked on 31 October 2026. The schedule uses simple monthly interest on the balance still owed. Interest is not added to the balance. The simple yearly rate is the extra cost as a flat yearly figure. It is not the bank’s interest rate. Fees and rates differ by bank and date. The wording on this page is our own.

Questions

Is no-cost EMI really free?
The interest is usually covered by an upfront discount. GST on the interest, and a processing fee, are extra. You may also lose a cash or instant discount.
Why is there GST if the interest is covered?
The bank still charges interest. GST is on that interest. The discount does not cover the GST.
What if I return the product or close early?
Banks may take back the upfront discount and add charges. Read your bank’s EMI terms before you buy.
What does RBI say?
RBI’s credit card rules say the bank must show the principal, the interest and the upfront discount before EMI conversion and on the bill. An EMI with interest must not be shown as zero-interest or no-cost.
Is there compounding in an EMI?
No. Each month the bank charges interest only on the balance still owed, and the EMI pays it that month. Interest is not added to the balance. This tool shows the extra cost as a simple yearly rate.

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