Education Loan EMI Calculator
An education loan lets you fund higher studies now and repay after you start earning, but the interest does not wait. This education loan EMI calculator shows your monthly instalment once repayment begins, and how the balance grows during the study and moratorium period if you do not service the interest. Enter the loan amount, interest rate and tenure to see the EMI and total interest, and plan around the Section 80E deduction on the interest you pay.
120 months
Monthly EMI
₹20,240
Total Interest
₹9,28,830
Principal
₹15,00,000
Total Payment
₹24,28,830
| Month | Principal | Interest | Balance |
|---|---|---|---|
| 1 | ₹7,115 | ₹13,125 | ₹14,92,885 |
| 2 | ₹7,178 | ₹13,063 | ₹14,85,707 |
| 3 | ₹7,240 | ₹13,000 | ₹14,78,467 |
| 4 | ₹7,304 | ₹12,937 | ₹14,71,163 |
| 5 | ₹7,368 | ₹12,873 | ₹14,63,796 |
| 6 | ₹7,432 | ₹12,808 | ₹14,56,364 |
| 7 | ₹7,497 | ₹12,743 | ₹14,48,867 |
| 8 | ₹7,563 | ₹12,678 | ₹14,41,304 |
| 9 | ₹7,629 | ₹12,611 | ₹14,33,675 |
| 10 | ₹7,696 | ₹12,545 | ₹14,25,979 |
| 11 | ₹7,763 | ₹12,477 | ₹14,18,217 |
| 12 | ₹7,831 | ₹12,409 | ₹14,10,386 |
About the Education Loan EMI Calculator
An education loan EMI is the fixed monthly amount you repay a bank or NBFC once your course-linked moratorium ends. It is worked out on the reducing-balance method, the same as any other loan, but the principal it is calculated on may be larger than the amount disbursed if unpaid interest was allowed to accumulate during the study years.
Why it is useful
Study loans are unusual because repayment starts years after disbursal, and the interest that quietly accrues in between decides how heavy the EMI eventually becomes. Seeing the EMI and the effect of the moratorium in advance lets you decide whether to service the interest while studying, and helps you size the loan against a realistic starting salary.
How the calculation works
The EMI uses the standard formula EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is the principal at the start of repayment, r is the monthly rate (annual rate ÷ 12 ÷ 100) and n is the number of monthly instalments. The moratorium is the course duration plus 6 to 12 months during which EMIs need not be paid, but interest still accrues; unless you service that interest, it is added to P and every future EMI rises.
Key inputs explained
- Loan amount: The sanctioned principal, net of any margin or scholarship you fund yourself.
- Interest rate: The annual rate charged by the bank, typically linked to a benchmark plus a spread.
- Repayment tenure: The years allowed to repay after the moratorium, often up to 15 years.
- Moratorium period: Course duration plus 6 to 12 months; interest accrues here even though EMIs are paused.
Example calculation
Inputs
- Loan amount (P)
- ₹15,00,000
- Interest rate
- 10.5% p.a.
- Tenure (n)
- 10 years (120 months)
Calculation breakdown
- Monthly rate (r)
- 10.5 ÷ 12 ÷ 100 = 0.00875
- (1 + r)^n
- (1.00875)^120 ≈ 2.845
- EMI
- 15,00,000 × 0.00875 × 2.845 ÷ (2.845 − 1)
Over 120 months you repay about ₹24.29 lakh, of which roughly ₹9.29 lakh is interest. Had you not serviced interest during a 4-year moratorium, about ₹6.3 lakh (15,00,000 × 10.5% × 4) would have capitalised into the principal, pushing the EMI and total cost much higher.
Benefits
- See the EMI that will apply once your moratorium ends.
- Understand how unpaid moratorium interest inflates the loan.
- Plan the Section 80E interest deduction into your repayment.
Limitations
- Assumes a fixed rate; most education loans are floating and reset with the benchmark.
- Does not model partial interest servicing or a stepped EMI during study years.
- Excludes processing fees, insurance and any margin money you contribute.
Tips
- Service at least the interest during the moratorium to stop the balance ballooning.
- Claim the full interest under Section 80E for up to 8 assessment years.
- Compare lenders on the spread over the benchmark, not just the headline rate.
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About this calculator
The Education Loan EMI Calculator is built and maintained by the PaisaBot team. All calculations run instantly in your browser using established financial formulas, and we use high-precision arithmetic to keep the results reliable.
Data accuracy: Interest rates, tax slabs, and scheme rules are updated periodically, but figures can change with RBI, government, and lender revisions. Always confirm the latest rates with your bank or an official source before acting.
Educational purpose: This tool is provided for general information and financial education only. It does not constitute investment, tax, or legal advice. For decisions specific to your situation, please consult a qualified financial advisor.