EMI vs Cash Calculator
See what paying in instalments really costs compared with paying the full price today.
Example numbers are filled in so you can see how it works. Replace them with yours.
0 for an interest-free plan
Discounts and other charges
Only if you pay in full today
Discount that offsets the interest
e.g. tax on interest, insurance
Result
Enter the price, rate and duration to compare EMI with paying upfront.
Recent
EMI or pay upfront?
Paying in instalments spreads the cost, but you usually pay more in total: interest, processing fees and sometimes a lost discount for paying in full. This calculator adds all of that up so you can compare like with like.
Example: a “no-cost” EMI that isn’t free
A ₹60,000 phone on a 6-month interest-free plan with a ₹199 processing fee, while paying upfront gets you ₹3,000 off. The instalments total ₹60,000 plus the fee, ₹60,199 in all. Paying upfront costs ₹57,000, so the EMI costs ₹3,199 more, roughly 19% a year in effect. Open this example.
Results are estimates for comparison, not a loan offer. Check the lender’s final terms.
Questions
Is no-cost EMI really free?
Not always. Usually the bank still charges interest, and the shop gives you a discount equal to that interest. You may still pay a processing fee and tax on the interest, and you may lose a discount for paying upfront. Enter those amounts to see the real difference.
How is the EMI calculated?
On a reducing balance: each month’s interest is charged on what you still owe, so the interest part shrinks and the repayment part grows. The formula is EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where r is the monthly rate and n the number of months.
What is the effective yearly rate?
It’s the interest rate that would make the instalments and upfront fees equal to the cash price today. It includes fees and lost discounts, so it shows what borrowing really costs, even for offers advertised as interest-free.
Are the results exact?
They’re estimates. Lenders may round instalments, charge tax on interest and fees (for example GST in India), or count days differently. Check the final terms before you sign.