Formula used
In full upfront subsidy mode, financed principal is reduced until the total of base monthly instalments equals the purchase price minus down payment. The quoted-principal mode instead uses your actual issuer principal. The repayment schedule uses a fixed annual rate divided by twelve. Add processing fees and their tax at checkout, add tax on each month’s interest, and subtract separate cashback in its stated month. Compare that total with the cash purchase price. Return scenarios use the same refund and cashback retention, while the closure path pays the remaining principal and entered closure charges.
Example calculation
For a ₹60,000 purchase with a full upfront interest subsidy over six months and no down payment, the base EMI is ₹10,000. A ₹199 processing fee with an entered 18% fee-tax assumption adds ₹234.82. A ₹3,000 cash-payment discount makes the upfront price ₹57,000. Interest tax and any cashback are added separately by the calculator; these are example assumptions, not a bank quote.
How to use this calculator
- Enter the EMI purchase price, extra cash discount, down payment, underlying interest rate and term.
- Choose a full upfront interest discount or enter the actual financed principal from the issuer.
- Add processing fees, applicable tax assumptions and separate cashback timing.
- For a return, enter the month, actual merchant refund, retained cashback and confirmed fee refund.
- Enter closure charges, compare both decisions, and download the input snapshot and monthly schedule.
Important assumptions
- Credit-card EMI, fixed monthly reducing-balance interest and month-end instalments are modelled. Example rates are editable.
- Processing fee and its tax are paid at checkout. Actual billed dates, day-count interest and paise rounding may differ.
- The merchant refund is usable in the selected month and does not automatically reduce the EMI loan. Only full loan closure is modelled as the alternative.
- The purchase comparison assumes you keep the goods. Return comparisons do not value goods retained after a partial return.
- Annualised cost versus cash includes the forgone cash discount and is different from the lender’s disclosed APR. Mixed-sign cashback payments can make it unavailable.
Common mistakes to avoid
- Entering a price already reduced by the interest subsidy and then applying the subsidy again.
- Comparing a base EMI with a cash price without adding fees and applicable taxes.
- Assuming a merchant refund automatically closes the card EMI.
- Subtracting the same cashback reversal from both the merchant refund and the separate cashback field.
- Treating a net refund credit as cash available before the issuer actually settles it.
The small charges outside the advertised EMI
A purchase can have three different prices: the seller’s EMI price, the financed principal after an upfront interest subsidy, and the price available when you pay immediately. The calculator keeps these separate. It also separates base interest from tax charged on interest, and the processing fee from tax charged on that fee. This makes the comparison useful even when the advertised instalments add up to the sticker price.
Returned the product but still see an EMI?
The merchant’s refund and the card issuer’s loan are different parts of the transaction. A refund may appear as a card credit while scheduled instalments continue. The issuer may require a separate closure request. In this model you enter the credit you expect and compare continuing the instalments with settling all remaining debt. Check the issuer’s written response before assuming either treatment applies.
What changes after a partial return?
Enter the expected merchant refund rather than the original price. Then enter how much separate cashback you will keep. Cashback already received is reversed at the return date down to that amount; cashback scheduled for a later month is reduced before it is paid. The two refund paths use the same retained goods and credits, so their cash outflows can be compared without pretending that a partial return removes the whole purchase.
Why the annualised cost can surprise you
A cash discount changes the value of financing. Giving up a ₹3,000 cash discount to spread a ₹60,000 purchase across six months is an economic cost even if the seller subsidises interest. The annualised figure converts the modelled monthly cash flows into an effective yearly rate. It can be negative if a valid offer makes EMI cheaper, and it is intentionally omitted for cash-flow patterns that do not support the simple one-rate calculation.
Before asking the bank to close the EMI
Ask for the settlement date, principal outstanding, foreclosure charge, applicable tax and treatment of the subsidy or cashback. The model closes immediately after the selected month’s instalment, so an actual mid-cycle quote can differ. Gross settlement is shown separately because a refund may arrive after you need to pay the bank.
Source and methodology
The arithmetic uses an explicit monthly loan schedule and the user-entered purchase, fee, tax, cashback and refund assumptions. Apple’s India financing terms explain upfront interest subsidy, issuer-controlled EMI terms and the need to check refund or closure treatment with the card issuer. They are an example of transaction terms, not a rule applied to every issuer. No product, bank or card is recommended. Financial inputs and exported reports are processed in your browser.
Calculation version: 2026-09-23.1 · Facts checked: 2026-09-23
Next review trigger: Issuer refund, subsidy, cashback or tax treatment changes; recheck source links and example assumptions before updating copy.
Primary references