EMI formula
EMI = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1), where P is the loan amount (price − down payment), r is the monthly interest rate (annual ÷ 12 ÷ 100) and n is the number of months.
Is “no-cost EMI” really free?
Usually the interest is offered as an upfront discount, so you pay the listed price in instalments. But watch for:
- Processing fees (often ₹99–₹299 + GST).
- GST on the interest portion charged by the bank.
- Losing a cash/bank discount that’s only available on full payment.
Always compare the total amount you pay.
Tips
- Shorter tenure = less interest.
- A bigger down payment lowers both EMI and interest.
- Credit card EMIs often carry 14–18% interest – check your card’s rate.
- A refurbished laptop at a lower price may need no loan at all – compare with our savings calculator.
Example: ₹40,000 laptop on EMI
| Tenure | EMI at 15% | Total interest (approx.) |
|---|---|---|
| 6 months | ~₹6,960 | ~₹1,770 |
| 12 months | ~₹3,610 | ~₹3,320 |
| 24 months | ~₹1,940 | ~₹6,550 |
Longer tenures look cheaper monthly but cost much more overall.
Credit card EMI vs Buy Now Pay Later
- Credit card EMI: converts a purchase into instalments; interest and processing fee apply; blocks your card limit.
- BNPL / consumer loans: may need KYC; check late fees and interest carefully.
- Debit card EMI: offered by some banks to pre-approved customers.
Spend less, borrow less
A refurbished business laptop often costs 40–60% less than a new one with similar real-world performance – sometimes removing the need for EMI entirely. BudgetLappy also offers Cash on Delivery across India.
Frequently asked questions
What interest rate should I enter?
Use the rate your bank or card shows for EMI conversion – often 13–18% per year for credit cards.