Real Cost of “No Cost” EMI Calculator
Add the offer details to uncover taxes, fees, and the cash discount you are giving up.
How “No Cost” EMI works
The bank still charges interest, while the seller provides a discount designed to offset it. You still pay GST on the interest, applicable fees, and may give up a cash discount.
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Offer details
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Your real cost
Effective annualized cost3.6%
The true yearly cost after GST, processing fees, and the cash discount you give up.
Extra cost over paying cash₹1,906
Monthly EMI₹8,333
Total amount paid₹1,01,906
Where the extra cost comes from
₹0Lower discount with EMI
₹1,553GST on bank interest
₹299Processing fee
₹54GST on processing fee
The merchant offsets about ₹8,630 of bank interest. GST on that interest is not offset and declines with each instalment.
| Month | EMI | Interest part | GST on interest | Actual payment |
|---|---|---|---|---|
| 1 | ₹8,333 | ₹1,294 | ₹233 | ₹8,566 |
| 2 | ₹8,333 | ₹1,195 | ₹215 | ₹8,548 |
| 3 | ₹8,333 | ₹1,094 | ₹197 | ₹8,530 |
| 4 | ₹8,333 | ₹991 | ₹178 | ₹8,512 |
| 5 | ₹8,333 | ₹887 | ₹160 | ₹8,493 |
| 6 | ₹8,333 | ₹781 | ₹141 | ₹8,474 |
| 7 | ₹8,333 | ₹674 | ₹121 | ₹8,455 |
| 8 | ₹8,333 | ₹566 | ₹102 | ₹8,435 |
| 9 | ₹8,333 | ₹456 | ₹82 | ₹8,415 |
| 10 | ₹8,333 | ₹344 | ₹62 | ₹8,395 |
| 11 | ₹8,333 | ₹231 | ₹42 | ₹8,375 |
| 12 | ₹8,333 | ₹116 | ₹21 | ₹8,354 |