Zero Cost EMI Calculator

Under a no-cost EMI offer the instalments add up to the product price, so there is no interest line on your statement. This calculator shows those instalments and then adds the two things that usually do cost money: the processing fee and any discount you give up by not paying upfront.

Product price

₹

Down payment

₹

EMI tenure

Processing fee (one-time)

₹

Most banks charge a conversion fee even on no-cost EMI.

Discount given up by not paying upfront

₹

If the cash price would have been lower, that gap is a real cost.

Monthly EMI

₹10,000

6 instalments

Financed amount

₹60,000

Total instalments

₹60,000

No interest component

Effective cost

₹60,199

₹199 over the sticker price

EMI by tenure

Instalment size at different no-cost EMI tenures
Tenure	EMI	Final instalment	Total
3 months	₹20,000	₹20,000	₹60,000
6 months	₹10,000	₹10,000	₹60,000
9 months	₹6,666	₹6,672	₹60,000
12 months	₹5,000	₹5,000	₹60,000
18 months	₹3,333	₹3,339	₹60,000
24 months	₹2,500	₹2,500	₹60,000

The instalments add up to the financed amount exactly. What changes the real cost is the processing fee and any discount you gave up.

Monthly EMI

₹10,000

6 instalments

Offer terms differ by bank, card and merchant. Read the specific offer before you buy.

What it is:: A calculator for what a no-cost EMI offer actually costs.
What it calculates:: The instalments, and the effective cost once the processing fee and any forgone cash discount are counted.

Assumptions

Instalments carry no interest; the remainder lands on the final instalment.
Processing fees and GST on them are charged separately.
A discount you would have received paying upfront is treated as a real cost.

How it works

Instalments are simply the financed amount divided by the number of months, which is the EMI formula at 0%.

No-cost EMI is typically funded by the merchant discounting the product, or by the interest being shown upfront and then reversed as a cashback. Either way, the cash price you could have negotiated is the cost you are trading away.

Banks commonly charge a one-time processing fee on EMI conversions, and GST applies to that fee. Add it in the field below to see the effective cost.

Formula

EMI = financed amount / n; Effective cost = price + processing fee + forgone discount

financed amount: = price minus down payment
n: = number of monthly instalments
forgone discount: = the extra discount you would have got paying upfront

Not every no-cost EMI offer is genuinely free. Compare the EMI price against the best cash price before deciding.

Example calculation

A ₹60,000 purchase over 6 months, ₹199 fee, ₹2,000 cash discount given up

Financed amount: ₹60,000
Monthly instalment: ₹10,000
Total instalments: ₹60,000
Processing fee: ₹199
Discount given up: ₹2,000
Effective cost: ₹62,199

Frequently asked questions

Is no-cost EMI really free?

Sometimes, and sometimes not. Where the merchant funds the discount and the bank waives the fee, the cost really can be zero. Where the cash price would have been lower, or a processing fee applies, you are paying for the convenience.

What charges can still apply?

A one-time processing fee on the EMI conversion, GST on that fee, and occasionally a foreclosure charge if you close the plan early. These are listed in the offer terms.

Does no-cost EMI block my credit card limit?

Yes. The full purchase amount is usually blocked against your limit on day one, and the limit is released as you pay each instalment.

Can I cancel a no-cost EMI plan midway?

Most issuers allow foreclosure, but the interest subvention already given may be reversed and a foreclosure fee charged. Check the terms before converting.