A paid Rs 1,64,900 upfront for iPhone 18 Pro, B chose credit card EMI, C picked no-cost EMI in festive sales – Who saved most after discounts?

The 2 biggest sales of the year are finally here, and chances are that you might have something or the other already added in your cart. While the sale is itself enough to buy something, have you ever wondered which payment method can help you save the most – upfront payment, credit card EMI or no-cost EMI?

Flipkart's Big Billion Days and Amazon's Great Indian Festival are good opportunities to save on planned purchases. But the biggest mistake consumers make is buying something simply because it is on sale. “A 40% discount on something you don't need is still 60% of the price spent unnecessarily,” says Ashish Lath, Founder & CEO, SaveSage.

So, for someone planning to buy an iPhone 18 Pro (Rs 1,64,900) during these sales, what could be the best payment method?

Buying iPhone 18 Pro on credit card EMI vs no-cost EMI vs full payment: Best deal?

There’s never a sure-shot, one-word answer to such questions. The best payment method is the one that brings down the total cost of the phone, not necessarily the one offering the biggest advertised discount.

During Flipkart's Big Billion Days, Axis Bank and ICICI Bank are offering 10% instant discounts on eligible purchases, while Amazon's Great Indian Festival has a similar 10% offer on eligible SBI card transactions, shares Lath, adding that these come with a cap and eligibility.

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For example, Axis Bank is advertising discounts of up to Rs 17,250, along with additional discounts of up to Rs 13,250 on select Flipkart products. These are maximum promotional benefits, and the actual discount on the iPhone depends on the product, card and payment method.

Which payment method would help you save the most?

According to Lath, if you have sufficient savings, making a full credit card payment and clearing the bill by the due date should be the primary option. This would allow you to enjoy eligible discounts and rewards without paying interest.

However, some no-cost EMI offers may provide additional discounts, making them cheaper than upfront payment even after considering processing fees and GST. Lath suggests you compare the final payable amount on both platforms, including bank discounts, cashback, reward points, EMI charges and exchange benefits.

iPhone 18 Pro (256GB)	Flipkart	Other charges	What it costs	Amazon	Other Charges	What it costs
Upfront payment	Max Rs 5500 off on select cards	Rs 1,007 (protect promise+payment handling+offer handling)	Rs 1,59,400	Up to Rs 6000 as cashback	Rs 204 (Doorstep service fee+marketplace fee)	Rs 1,59,104
Credit card EMI	Rs 5750 discount with 16% interest (6-month)	Processing fee, GST on interest, protect promise fee, offer handling fee etc.	Rs 1,69,421.36	Rs 6250 discount with 17.25% interest (3-month)	Processing fee, GST on interest, doorstep service, offer processing fee etc.	Rs 1,65,303.38

(Source: Flipkart, Amazon websites)

Now, let’s look at how much the phone would cost if one opts for a no-cost EMI. (For illustration, we have used the no-cost EMI offer shown on the Amazon website)

iPhone 18 Pro effective price with no-cost EMI

iPhone 18 Pro (256 GB) - Rs 1,64,900

The Amazon Pay ICICI Credit Card is offering a no-cost EMI on a 3-month tenure. The effective price displayed on the website is Rs 1,64,900. However, a processing fee of Rs 299 will also be applied to the total cost. Here’s a breakdown of what you would pay with a no-cost EMI option:

No-cost EMI - Rs 54,967*3 + Rs 299 processing fee (plus GST)

In addition, you will pay GST on the interest amount, even though it is not charged.

The interest portion in this case is Rs 4,304. So, 18% GST would add Rs 773 to the total price.

Advertised price	Rs 1,64,900
No-cost EMI (3 months)	Rs 54,967*3
Processing fee + GST	Rs 299 + Rs 53.82
GST on interest component	Rs 773
Other charges (doorstep delivery + offer processing fee)	Rs 199+69
Total cost	Rs 1,66,498.15

(Source: Calculation from prices on Amazon.in)

Let's assume all three purchase the same iPhone priced at Rs 1,64,900, without any additional bank discounts. Person A pays the entire amount upfront Rs 1,64,900 and avoids EMI-related charges. If they use a rewards credit card and clear the bill on time, they may also earn cashback or reward points, Lath highlights.

Person B chooses a regular credit card EMI. Along with the phone's price, they pay interest, applicable GST and processing charges. This generally makes regular EMI the most expensive option.

iPhone 18 Pro on SBI Credit Card EMI (since it is offering a Rs 6,250 discount on this option)

Advertised price	Rs 1,64,900
Instant Discount	Rs 6,250
Effective price	Rs 1,58,650
3 months EMI	Rs 54,547*3
Processing fee + GST	Rs 169 + Rs 30.42
GST on interest component	Rs 825
Other charges (doorstep service + offer processing fee)	Rs 199+199
Total Cost	Rs 1,65,303.38

(Source: Calculation from prices on Amazon.in)

Person C chooses no-cost EMI. Here, the seller usually provides a discount to offset the bank's interest. However, GST on interest and processing charges may still apply, so the total cost can be slightly higher than the advertised price.

“Under these conditions, Person A would generally pay the least, Person B the most, and Person C somewhere in between,” Lath says, but also points out that festive sales can change this calculation.

How the 3 payment methods compare for the phone on Amazon:

Upfront payment	Credit card EMI	No-cost EMI
Rs 1,59,168	Rs 1,65,303.38	Rs 1,66,498.15

(Note: This does not mean that upfront payment will always be cheapest.The current calculations use specific offers, fees and assumptions.)

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Why is no-cost EMI not what people think?

The biggest misconception about no-cost EMI is that the bank doesn't charge any interest.

In a no-cost EMI, the seller readjusts the interest amount so that the sum of all the EMIs adds up to the price you would pay upfront. However, interest still exists, and interest attracts GST, explains a super.money spokesperson. Additionally, there is also a processing fee.

Lath explains that additional costs may still apply, including:

• Processing fees charged by the bank
• 18% GST on the interest component and applicable processing fees
• Foreclosure charges if the customer closes the EMI early
• Late-payment charges and penalties if an instalment is missed
• Loss of regular cashback or reward points, since many banks exclude EMI transactions from earning rewards

For example, a customer purchasing an iPhone during Flipkart's Big Billion Days might find a no-cost EMI offer attractive. But if the upfront payment provides better cashback or discounts, the EMI option could ultimately cost more.

“No-cost EMI doesn't necessarily mean zero additional charges. Consumers should check the complete repayment schedule, including taxes and fees, before choosing it,” he suggests.

Who should go for normal EMIs and who should pick the no-cost EMI option?

The choice is rather simple. Choose a no-cost EMI if you can't pay upfront, the offer is on the final bill with no price markup, the processing fee is low, and you're confident of paying every EMI on time. Choose a normal EMI if the instant discount or cashback is bigger than the interest + GST + fee, the super.money spokesperson says.

No-cost EMI is generally the better option, provided the final charges are reasonable, if someone wants to spread the cost of an expensive purchase, according to Lath. A regular EMI should generally be considered when no-cost EMI is unavailable, or when an exclusive bank offer makes the regular EMI cheaper overall. “For example, during Flipkart's Big Billion Days or Amazon's Great Indian Festival, certain bank discounts may be available specifically on EMI transactions,” he states.

Another mistake people make is choosing longer EMIs simply because the monthly instalment looks smaller. With regular EMIs, longer repayment periods generally result in higher total interest costs. The ideal EMI is not necessarily the one with the smallest monthly payment, but the one that fits your monthly budget.

Quick test: compare the all-in cost of each option. The cheapest one wins, whatever the label says.

Do normal EMI vs no-cost EMI impact one’s credit score differently?

Both usually show up the same way if done on the same credit card. The difference is not "normal vs no-cost" but amount, tenure and repayment discipline.

Amount: the full purchase amount gets blocked on your limit, so utilisation rises and the score can dip until the EMIs are paid down. Higher utilisation (above ~30%) hurts.

Tenure: the longer the tenure, the longer your credit limit will be blocked.

Repayment discipline: if there are any late or missed payments, these are reported to credit bureaus and impact your credit score directly.

SaveSage's Lath underscores that choosing no-cost EMI does not automatically make it better for your credit score. What matters most is whether you make your payments on time and how much of your available credit you are using.

For example, suppose someone has a credit card limit of Rs 2 lakh and purchases an iPhone worth Rs 1.65 lakh on EMI. That's more than 80% of their credit limit. If the bank reports a high outstanding balance to the credit bureau, it could negatively affect their credit score.

Missing an EMI payment can also damage their credit history, whether it's a regular EMI or a no-cost EMI.

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Tips and tricks to save more during festive sales

Flipkart's Big Billion Days and Amazon's Great Indian Festival are good opportunities to save on planned purchases. But the biggest mistake consumers make is buying something because it is on sale. A 40% discount on something you don't need is still 60% of the price spent unnecessarily, highlights Lath.

He recommends a few simple strategies to make the most of these sales:

1.Compare prices across both platforms: The same product may be cheaper on Flipkart or Amazon depending on the bank discount and other offers available.

2.Choose the right credit card: Flipkart has offers with Axis Bank and ICICI Bank, while Amazon is offering discounts with eligible SBI cards. However, a 10% discount doesn't always mean 10% savings because maximum discount limits apply.

3.Don't overlook regular cashback: Amazon has advertised unlimited 5% cashback for eligible Prime members using the Amazon Pay ICICI Bank Credit Card. Depending on the product's eligibility and the SBI discount cap, cashback may sometimes offer better value than an instant discount.

4.Check exchange offers: Customers should compare the actual exchange value with what they could get by selling their old phone separately.

5.Understand EMI charges: Don't assume no-cost EMI is completely free. Check processing fees, GST, interest adjustments and whether selecting EMI means giving up regular credit card rewards.

6.Track price history: Don't assume a product is at its lowest price just because the platform displays a large discount. Compare it with its recent selling price.

7.Avoid impulse purchases: A limited-time deal shouldn't become a reason to buy something you cannot comfortably afford.

One important tip is to check whether bank discounts, exchange offers and credit card rewards can be combined.