Credit card EMI is calculated using the standard reducing-balance EMI formula: EMI = [P × R × (1+R)^N] / [(1+R)^N − 1], where P is the outstanding amount converted to EMI, R is the monthly interest rate, and N is the tenure in months you select.

Credit card EMI conversion plans typically carry interest rates between 10% and 36% per annum because credit cards are unsecured, revolving credit lines with higher risk to the issuer, compared to lower rates on secured or pre-approved personal loans.

Paying only the minimum due keeps the remaining balance on revolving credit, which accrues interest daily and can spiral quickly. Converting to EMI locks the outstanding amount into fixed monthly payments at a defined (usually lower) interest rate over a fixed tenure.

Most card issuers charge a one-time processing fee, typically 1-3% of the converted amount, in addition to the EMI interest. It's worth factoring this fee in when comparing the true cost of EMI conversion against other borrowing options.

Many issuers allow foreclosure of a credit card EMI plan, though they may charge a foreclosure fee on the remaining principal. Check your card issuer's terms, as this fee can sometimes offset the interest savings from early repayment.