How this calculation works
Use the EMI estimate when you know the amount, interest rate, tenure and processing fee. Switch to the cash comparison when you have an offer with quoted instalments. That comparison adds the upfront payment, fee and any taxes absent from the quote, then compares the total with the cash price after its discount. Nominal totals answer how many rupees leave your account; the optional present-value comparison also considers when they leave.
Worked example
This example uses illustrative inputs. Your current result is shown above.
A ₹60,000 cash price with a ₹3,000 cash discount costs ₹57,000. Twelve quoted ₹5,000 instalments plus a ₹500 processing fee and 18% tax on that fee cost ₹60,590 before cashback. EMI costs ₹3,590 more in nominal rupees. With no fee or discount, both cost ₹60,000.
Assumptions and limits
- The default estimate retains reducing-balance interest, tax on interest and fee, and the first-statement fee estimate. Broken-period interest and missed payments are excluded.
- The comparison uses the actual quoted instalments, including any interest or merchant subsidy already present. Additional taxes must not duplicate amounts already in the quote.
- Cash price, cash discount, upfront EMI payment, processing fee and tax on that fee occur today. Instalments occur at month-end; any entered additional taxes are spread evenly over the instalments.
- Cashback is excluded until explicitly enabled, then treated as a conditional receipt in the selected month. Rewards points, eligibility restrictions and settlement delays are not predicted.
- Optional present values use an assumed effective annual discount rate. They do not change the nominal total paid or establish a guaranteed benefit from investing retained cash.
Questions people ask
Does a no-cost EMI offer always cost the same as cash?
Only if the full cashflows match in nominal amount. A processing fee, tax not included in instalments, or discount available only to cash buyers can make EMI more expensive. Merchant subsidies may already be built into the quoted schedule.
How do I avoid counting tax or interest twice?
Enter the actual quoted instalments including whatever is already in them. Use “Other taxes” only for amounts charged in addition to that quote. Do not add the original interest again when a merchant subsidy has already adjusted the quote.
What if the last instalment is a different amount?
Enter one amount for each month in the optional custom schedule. It replaces the repeated quoted amount and must contain exactly as many amounts as the selected tenure.
How should I handle conditional cashback?
Leave it excluded for a comparison without the reward, then enable it to see the conditional scenario. Check eligibility, caps and receipt timing against the offer; the calculator cannot verify that cashback will arrive.