Credit Card EMI Calculator: Instalment and True Cost
A ৳60,000 phone on a 6-month 0% EMI costs ৳10,000 a month, but a 2% processing fee (৳1,200) makes the true cost about 6.96% a year. Enter your price, term, rate and fee below.
৳
= 60 thousand taka
months
= 6 months
%
Enter 0 for a 0% EMI offer. Bangladesh Bank caps card interest at 25% a year.
Interest method
Processing fee
%
One-time conversion or processing fee charged when you convert. Enter 0 if none.
Monthly instalment
৳10,000
for 6 months
Purchase price
৳60,000
Total interest
৳0
Processing fee
৳1,200
Total cost
৳61,200
You pay above the price
৳1,200
True yearly cost (incl. fee)
6.96%
A ৳60,000 purchase over 6 months costs ৳10,000 a month, ৳61,200 in total. With fees and interest the true yearly cost is 6.96%.
Even at “0% EMI”, the ৳1,200 fee makes the true cost about 6.96% a year.
How this was calculated
0% interest: instalment = ৳60,000 ÷ 6 = ৳10,000
Processing fee ৳1,200, with the first bill
Total cost = price + interest + fee = ৳61,200
True yearly rate from the monthly cash flows including the fee (IRR × 12) = 6.96%
What if you only pay the minimum instead?
Paying 5% of the bill or ৳500 (whichever is higher) each month at 25% a year, it takes 7 years 1 month to clear and costs ৳37,548 in interest.
Minimum-payment rules differ by bank — this is an assumption; check your card’s terms.
Pick the instalment period: 3, 6, 9, 12, 18, 24 or 36 months.
Enter the bank's annual interest rate; 0 for a 0% EMI offer.
Choose reducing or flat interest, and a fee in percent or taka, then enter the fee.
See the monthly instalment, total cost and true yearly rate including fees; download the schedule as CSV if you like.
The instalment formula
Reducing rate (usual):
EMI = price × r × (1+r)ⁿ ÷ [(1+r)ⁿ − 1]
where r = annual rate ÷ 12 ÷ 100 and n = number of months. Each month’s interest is on the remaining balance only.
Flat rate: total interest = price × rate × months ÷ 12; instalment = (price + total interest) ÷ months. Interest is charged on the full price for the whole term, so the same rate costs much more.
True yearly cost: the monthly rate (IRR) that links what you actually receive (price minus fee) to the monthly instalments, times 12. It reveals the real cost of both fees and flat rates.
Examples
Offer
Monthly
Interest
Fee
Total cost
True yearly cost
৳60,000, 6 m, 0%, 2% fee
৳10,000
৳0
৳1,200
৳61,200
6.96%
৳60,000, 12 m, 15% reducing
৳5,415
৳4,986
৳0
৳64,986
15.00%
৳60,000, 12 m, 15% flat
৳5,750
৳9,000
৳0
৳69,000
26.62%
৳100,000, 12 m, 0%, 1.5% fee
৳8,333
৳0
৳1,500
৳101,500
2.80%
What to know in Bangladesh
Interest cap: card interest can’t exceed 25% a year (from 16 March 2026, Bangladesh Bank).
Fees: 0% offers usually carry a 1–3% processing fee; some have none. VAT may apply to the fee.
Cash withdrawals: no interest-free period — interest from day one.
Late payment: one late fee per billing cycle, plus interest on the unpaid amount.
More: when a card EMI makes sense
A 0%, low-fee EMI is often a cheap way to buy something you need while keeping cash in hand, especially when the true yearly cost is below a normal bank loan. But flat-rate or high-fee offers can cost more than a personal loan. And paying only the minimum instead of an EMI keeps the full card rate running for years. Before you buy, compare three things: the cash price vs the EMI price, the fee, and the true yearly cost.
Frequently asked questions
Is 0% EMI really free?
The interest is 0%, but most banks charge a one-time processing or conversion fee. A 2% fee on ৳60,000 is ৳1,200, which over 6 months equals about 6.96% a year. Some shops also charge more on EMI than the cash price — compare both.
What is the maximum credit card interest rate?
Under Bangladesh Bank's policy of 16 March 2026, card interest can't exceed 25% a year, charged only on the unpaid balance, not the whole bill.
How much do flat and reducing rates differ?
A lot. ৳60,000 over 12 months at 15% reducing costs about ৳4,986 in interest; at 15% flat it costs ৳9,000 — a true yearly cost of about 26.62%. Check which method the offer uses.
What if I only pay the minimum instead?
The full card rate keeps running on the balance. With ৳60,000 owed at 25% a year, paying 5% of the bill or ৳500 each month takes about 7 years and about ৳37,548 in interest. Minimum-payment rules vary by bank.
Can I pay off an EMI early?
Usually yes, but some banks charge a prepayment fee or cancel the 0% benefit. Check your card's terms.
Does an EMI block my credit limit?
Usually the full price is blocked from your limit and released gradually as you pay each instalment.