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How to Convert & Calculate Credit Card EMI

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Created on
March 29, 2023


What’s Inside

A credit card can be used to make large purchases and conveniently pay for them via monthly instalments, posing less financial strain. As appealing as this may be, it's important to use a credit card calculator to determine the EMIs and the total cost (principal + interest) before deciding to get a credit card.

Many card issuers offer low processing fees to sweeten the deal. Some even offer promotional campaigns that include no-cost EMIs, which translates to no additional charges to be incurred by you.

Calculating Credit Card EMI

The simplest way to do this is by using an online EMI conversion calculator. All you need to do here is enter your principal amount, rate of interest, and repayment duration. Using these inputs, the calculator will indicate the exact amount you need to pay. This information will help you decide if you’re better off paying back the entire amount in one shot or staggering it over a few months.

Converting Credit Card Transactions into EMIs

Typically, there are options to convert your transaction into EMIs. One is at the time of purchase itself if the merchant has offered that option. You can make a partial payment on your purchase and convert the rest into EMIs. Remember to check the interest and payment terms offered and use the credit card calculator before deciding.

The second option is available after making the purchase. Instead of the merchant, your card issuer/bank provides this offer based on your eligibility. By going to your card account through the web portal or mobile app, you can opt to convert your spending into EMIs.

Benefits of Converting Credit Card Transactions into EMIs

Converting a credit card transaction into EMIs can be beneficial if:

  • The issuer offers a lower interest rate on the EMIs than you would have normally incurred.
  • The issuer uses a reducing balance method to calculate your interest, which means your repayment liability will reduce with each monthly instalment.
  • The issuer charges no or low processing fees, and minimal additional charges are levied.

How Do Credit Card Calculators Help?

A credit card calculator is a handy tool that can help you understand your actual cost of borrowing and decide if it is a good idea to convert the spending into EMIs. Being an automatic digital tool, it saves you time and effort while avoiding the possibility of human error in calculation. Knowing your exact EMI helps you make an informed decision regarding your usage and enables you to plan your monthly expenses. 

An online credit card calculator has no cost of usage. You can use it several times to identify the ideal mix of EMI amount and repayment tenure as per your financial situation. Keep in mind that shorter tenures will lead to a higher EMI amount. On the other hand, a longer tenure means lower monthly instalments, but you will end up paying more in interest.

Wrapping It Up

Converting your transactions into EMIs can be useful, especially while buying expensive appliances. Although this poses a lesser strain on your pocket, it is recommended that you know about all associated charges, such as processing fees, EMI conversion charges, interest rates, prepayment penalties, etc.

Frequently Asked Questions

Is it good to convert credit card bills to EMI?

If the card issuer is offering a reduced interest rate on EMIs and is not charging a processing fee, then converting your credit bill to EMI can be a good idea. However, if you can afford it, paying off the entire amount by the due date is always better. Use an EMI conversion calculator to evaluate the cost-benefit and convenience of both scenarios before deciding.

Is a credit card EMI interest-free?

Yes, unless specified, a credit card EMI comes with a fixed interest rate associated with it. The interest rate varies depending on the card issuer, though, and the type of card. Some issuers may offer no-cost EMIs as a marketing promotion to encourage spending. Before opting for it, read the fine print and applicable terms and conditions to avoid unpleasant surprises.


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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