Education loan EMI calculator
Education loans have a feature no other loan has: you usually do not pay anything while you are studying. That is genuinely useful, and it is also where the cost hides, because interest does not pause with the payments.
- Amount borrowed₹10,00,000
- Total interest₹4,16,297
- Total repaid₹14,16,297
Balance over time
What you still owe at the end of each year.
Year of the loan →
Year-by-year schedule7 years
| Year | EMIs paid | Towards the loan | Interest | Balance left |
|---|---|---|---|---|
| 1 | 12 | ₹1,02,151 | ₹1,00,177 | ₹8,97,849 |
| 2 | 12 | ₹1,13,409 | ₹88,919 | ₹7,84,440 |
| 3 | 12 | ₹1,25,907 | ₹76,421 | ₹6,58,533 |
| 4 | 12 | ₹1,39,782 | ₹62,546 | ₹5,18,751 |
| 5 | 12 | ₹1,55,187 | ₹47,141 | ₹3,63,564 |
| 6 | 12 | ₹1,72,289 | ₹30,039 | ₹1,91,276 |
| 7 | 12 | ₹1,91,276 | ₹11,053 | ₹0 |
Free, no sign-up. The calculation runs on your device — nothing you type is sent anywhere.
The repayment itself
₹10,00,000 at 10.5% over 7 years is an EMI of ₹16,861 and ₹4,16,297 of interest. For a first job, that EMI is the whole question — it has to be payable on a starting salary, not the one the degree is supposed to lead to in five years.
What the moratorium actually does
Most education loans come with a moratorium covering the course plus six months to a year afterwards. No EMI is due during that period — but interest is still charged on the money already disbursed, and if it is not paid it is added to the balance. Repayment then starts on a larger loan than the one sanctioned.
On a four-year course, that can mean a noticeably bigger principal by the time the first EMI arrives. Many lenders offer a small concession, often around 1%, if simple interest is paid during the moratorium. If the family can manage even part of the interest during the study years, it has an outsized effect, because it stops the loan growing before it has been repaid at all.
Enter the amount you expect to owe at the end of the course — not the sanctioned figure — for a realistic EMI.
Tax relief
Under Section 80E, the interest paid on an education loan for higher studies is deductible from taxable income, with no upper limit on the amount, for up to eight years from when repayment begins. The deduction applies to interest only, not to repayment of the principal, and it is available to the person repaying the loan — which may be a parent. Rules change, so confirm the current position before you count on it.
Borrow against the job, not the brochure
The one figure worth being conservative about is the starting salary the course leads to. A useful test: the EMI should be payable on a realistic first-year salary while still leaving room to live, not on the salary the course brochure quotes as an average three years in.
If the EMI is more than about a fifth of a plausible starting take-home pay, it is worth looking again at the amount, the tenure, or a partial scholarship — repayment starting at the same time as a first rent, first deposit and first attempt at saving is a hard year to plan.
Once the job starts, put the EMI into a monthly budget from the first salary rather than the third. It is much easier to build a life around an EMI than to fit one in afterwards.
Other calculators
Worth reading first
How to use this calculator
Three inputs, and one optional field that most calculators leave out.
Enter the amount, rate and tenure
Type them in or drag the sliders. The EMI and the total interest update as you go.
Add an extra monthly amount
Optional, and the most useful box on the page: it shows how many years a small regular overpayment removes, and what that saves in interest.
Check it against your income
Enter your monthly take-home pay to see the EMI as a share of it, then look at the year-by-year schedule to see how slowly the balance moves at the start.