How is credit card EMI calculated?

When you convert a purchase to EMI, the bank charges interest on a reducing balance at the card's EMI rate, plus a one-time processing fee. On top of that, 18% GST applies to the interest and the fee. The EMI itself is the reducing-balance instalment; the GST is added to your card bill.

Is GST charged on credit card EMIs?

Yes. GST at 18% is levied on the interest component of each EMI and on the processing fee. It is not charged on the principal. This is why the true cost of a card EMI is higher than the headline interest suggests.

Is a credit card EMI cheaper than revolving credit?

Almost always. Revolving credit-card interest can run 36–45% a year, while a converted EMI is far lower. If you can't clear the bill in full, converting to EMI usually costs much less than carrying the balance.

Credit Card EMI Calculator (India)

Credit Card EMI Calculator

Thinking of converting a big purchase to EMI? This shows the real cost — the monthly EMI, the interest, the processing fee, and the 18% GST that banks add on the interest and fee, which most calculators leave out.

How it's calculated

The EMI is the reducing-balance instalment on your purchase amount at the card's EMI rate over the chosen months. Banks then add a one-time processing fee, and charge 18% GST on both the interest and that fee. The GST is billed to your card, so your true monthly outgo is the EMI plus a small GST share. The total cost shown here is interest plus fee plus GST.

GST at 18% applies to the interest and the processing fee, never to the principal. A "no-cost EMI" usually just moves the interest into the price or a discount you forgo — the GST on interest can still apply.

Frequently asked questions

What is a "no-cost EMI"?

The interest is offset by a discount the merchant would otherwise give, so you appear to pay only the price in instalments. GST on the interest portion may still be charged, so it isn't always truly free.

Can I foreclose a card EMI?

Usually yes, often with a small foreclosure fee plus GST. It can still save interest if done early.

Is a personal loan cheaper?

For larger amounts, often yes. Compare with the personal loan calculator before converting a big purchase.

Credit Card EMI Calculator

Your purchase

How it's calculated

Frequently asked questions