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How to Calculate Your Credit Card EMI?

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Created on
February 24, 2023


What’s Inside

Do you ever find yourself holding back from making a purchase because of the cost? Credit cards can actually be a big help when it comes to achieving your financial goals! They allow you to pay for purchases in instalments, which can really come in handy. This way, you can avoid any financial strain and still get what you want.

What is a Credit Card EMI?

Credit Card EMI allows cardholders to convert high-value purchases into small monthly payments, helping them manage their money better and make big purchases without immediate and upfront payments.

How Does it Work?‍

Let’s say your dream smartphone costs ₹1,00,000 (yes, the one that has the fruit logo on it). You use your credit card to pay for it. Now, there are three ways you can go about this purchase.

  1. Pay the total amount on your credit card and pay the full due amount the next month when the bill generates.
  2. Convert the purchase into EMIs. The interest rate can come to approximately around 14%, and you can often choose an EMI period of up to 24 months. So, if you convert your purchase into 24 EMIs, it might cost you around ₹4,750 per month.
  3. Check if the vendor offers Zero Cost EMI on your purchase. A small processing fee or a down payment may be charged, but you can save quite a lot.

How to Calculate Credit Card EMI?

Financial institutions typically calculate credit card EMI by subtracting the down payment from the total amount and multiplying the remaining balance by the applicable interest rate, loan term, and processing fee. This is a common practice and is widely used by lenders to determine the monthly payments for borrowers.

Use the Calculator from Fi Money

Fortunately, you can easily calculate your EMI using this personal loan EMI calculator. This tool lets you input your loan amount, interest rate, and loan term to determine your monthly payments. Additionally, you can also compare different loan options to find the one that works best for you.

Here's what the EMI calculator looks like. Click on this to give it a try!


If you're hesitant to make a big purchase because of the cost, credit card EMIs might be right up your alley. They let you pay for high-value purchases in small monthly installments, which can be a lifesaver when you're short on cash.

But, keep in mind that EMIs come with interest rates that can add up over time, increasing the cost of your purchase. So, before you opt for an EMI, consider checking if the vendor offers zero-cost EMI.

Ready for a Credit Card of Your Dreams?

Get the Fi-Federal Credit Card. This might just be what you need. With this card, you're assured of a 2% valueback through rewards. But that's not all, as you'll also get 5x on your top 3 brands, 2x on all partner brands, and 1x on everything else, including rent and fuel.

For travellers, the perks are even better as you can convert your Fi-Coins to airline miles or cashback. But that's just the tip of the iceberg, as you'll also enjoy airport lounge access, 1% forex, the freedom to choose your own billing cycle, and personalized reminders. With consolidated spend insights, you can easily track your spending and make informed financial decisions.

Frequently Asked Questions

1. Can I pay EMI with a credit card?

Yes. You can pay EMI with a credit card, provided your card issuer offers this facility.

2. How does EMI work on a credit card?

You can convert a purchase into EMIs on a credit card. Although the minimum amount of purchase to be converted into EMI varies from one bank to another.

3. What is the interest rate on credit card EMIs?

The interest rate for the credit card EMI facility varies from bank to bank. It usually depends on your credit score, tenure, and prevailing interest rate range. It starts at 12.5% p.a.

4. Is credit card EMI a loan?

Yes. Credit card EMI is also considered a loan because the financial institution provides you funds on a credit line and expects you to repay the principal and interest.


Fi Money is not a bank; it offers banking services through licensed partners and investment services through epiFi Wealth Pvt. Ltd. and its partners. This post is for information only and is not professional financial advice.
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