Education Loan EMI Calculator

Education loans usually begin repayment after a moratorium covering the course and a grace period. Enter the amount, rate and repayment tenure to see the EMI once repayment starts, and the total interest over the term.

A ₹15,00,000 loan at 10.5% over 10 years has an EMI of ₹20,240, and costs ₹9,28,853 in total interest.

Education loan amount

₹

Use the balance expected when repayment starts, including interest capitalised during the moratorium.

Interest rate (per year)

Loan tenure

Monthly EMI

₹20,240

for 10 years

Principal

₹15,00,000

Total interest

₹9,28,853

Total payment

₹24,28,853

Principal vs interest

Principal: ₹15,00,000 (61.8%)
Total interest: ₹9,28,853 (38.2%)

Compare tenures

EMI and total interest at different tenures
Tenure	EMI	Total interest	Total payment
5 years	₹32,241	₹4,34,448	₹19,34,448
7 years	₹25,291	₹6,24,445	₹21,24,445
10 years	₹20,240	₹9,28,853	₹24,28,853
15 years	₹16,581	₹14,84,573	₹29,84,573

Amortisation schedule

How each instalment splits between interest and principal.

Monthly EMI

₹20,240

10 years

What it is:: An education loan EMI calculator for the repayment period after the moratorium.
What it calculates:: The EMI once repayment starts, and the total interest over the repayment term.

Assumptions

The tenure entered is the repayment period, not the course duration.
Interest accruing during the moratorium should be added to the amount entered.
Tax treatment of the interest is not modelled.

How it works

Repayment uses the same reducing-balance EMI as any other loan. The tenure you enter is the repayment period after the moratorium, not the course duration.

During the moratorium, interest usually accrues. If it is not serviced, it is added to the principal, so the amount you repay is larger than the amount disbursed. Enter that larger figure to see a realistic EMI.

Paying even the simple interest during the study period keeps the principal from growing and reduces the eventual EMI.

Formula

EMI = P x r x (1 + r)^n / ((1 + r)^n - 1)

P: = loan amount (principal)
r: = monthly interest rate = annual rate / 12 / 100
n: = tenure in months

At 0% interest the formula collapses to EMI = P / n, which is what no-cost EMI offers use.

Example calculation

A ₹15,00,000 education loan at 10.5% repaid over 10 years

Loan amount: ₹15,00,000
Interest rate: 10.5% a year
Tenure: 10 years
Monthly EMI: ₹20,240
Total interest: ₹9,28,853
Total payment: ₹24,28,853

Frequently asked questions

What is a moratorium period?

A gap before EMIs begin, usually the course duration plus six to twelve months. Interest normally accrues during this period even though you are not paying EMIs.

Should I service interest during the course?

If you can, yes. It stops the interest from being added to the principal, which keeps the eventual EMI and total repayment lower.

Is education loan interest tax deductible?

There is a specific provision for interest on education loans under the Income Tax Act, subject to conditions and the tax regime you choose. Check the current rules or ask a tax professional.

What amount should I enter?

The expected outstanding when repayment starts, which is the disbursed amount plus any interest accrued and capitalised during the moratorium.