No-Cost EMI Real Cost Calculator
This calculator surfaces the three costs inside every no-cost EMI: GST on hidden interest, processing fees, and the foregone cash discount.
GST on interest shown True effective rate Cash vs EMI verdict
Product price (EMI price)Rs. 60,000
No-cost EMI tenure9 months
Processing fee charged by card or lenderRs. 199
Cash discount you give up by choosing EMIRs. 3,000
Underlying interest rate built into the scheme15% p.a.
Where the money actually goes
Product at cash price (after discount)Rs. 57,000
Interest built into scheme (discounted by seller)Rs. 3,812
GST at 18% on that interest (you pay this)Rs. 686
Processing fee + GSTRs. 235
Total you pay over 9 monthsRs. 60,921
Extra paid vs cash
Rs. 3,921
True effective rate
16.2% p.a.
Monthly outflow
Rs. 6,769
This no-cost EMI costs Rs. 3,921 more than paying cash. Against the cash price of Rs. 57,000, your effective borrowing rate is 16.2% p.a. The scheme is only free relative to the sticker price, which already excludes the Rs. 3,000 discount cash buyers negotiate.
KharchaUdhar Insider Tip RBI barred banks from calling any scheme interest-free, which is why the interest appears as an upfront discount on your invoice and then gets added back through EMIs. The one cost nobody discounts is the 18% GST on that interest component. On a Rs. 60,000 purchase over 9 months, that alone is roughly Rs. 700 to Rs. 900, quietly billed to your card.
Assumes the standard subvention structure where the seller discounts interest upfront and the bank recovers it via EMI. GST on interest and fees is billed to the cardholder. Indicative only.
KharchaUdhar Insider Tip Check your card statement the month after a no-cost EMI purchase. The GST line on the interest component appears there in small print, typically Rs. 700 to 900 on a Rs. 60,000 phone over 9 months. Sellers never mention it because the bank bills it, and the bank never mentions it because the seller made the promise.