Decode any EMI offer — true interest rate, total cost, and whether you're better off paying cash or investing the difference.
Evaluating a specific purchase? Use the full Buy Decision tool →What kind of EMI?
Purchase details
Amount paid upfront (0 for full EMI)
Flat ₹ fee charged by lender / brand
Leave at 0 if entering fee amount above
Equity: ~12% · Debt / FD: ~7%
Great deal
Low effective rate — EMI works in your favour
Effective annual rate: 3.74% — this is what "0% EMI" actually costs you.
Cost breakdown
Total paid: ₹51.0K
Opportunity cost · at 12% return
EMI is smarter here — borrow at 3.74% and invest your saved lump sum at 12%. You come out ahead by ~₹-999.
Quick rules
Effective rate < investment return
Your rate: 3.74% vs return: 12% — EMI is cheaper, invest the cash instead
Total interest < 5% of purchase price
Interest: ₹999 (2.0% of ₹50.0K)
EMI ≤ 10% of monthly take-home
EMI is ₹4.2K/mo — check against your income
Not a lifestyle creep purchase
Would you buy this at full cash price? If no, the EMI is enabling a purchase you can't truly afford.
Estimates only. Actual terms vary by lender. Always read the full EMI agreement before signing.