Loans & EMI

    Education Loan Calculator

    Estimate education-loan EMI post-moratorium along with total interest and repayment schedule.

    Inputs
    %
    years
    Result
    Monthly Education Loan EMI
    ₹25,291
    • Principal₹15,00,000
    • Total Interest₹6,24,445
    • Total Payment₹21,24,445
    • Tenure84 months
    • Interest Rate10.5%

    You will pay ₹25,291 every month for 84 months. Total interest cost: ₹6,24,445 (41.63% of principal).

    Principal vs Interest
    Step-by-step calculation
    1. Monthly rate r = 10.5 / 12 / 100 = 0.00875
    2. Number of months N = 7 × 12 = 84
    3. EMI = P·r·(1+r)^N / ((1+r)^N − 1) = ₹25,291
    4. Total payment = EMI × N = ₹21,24,445
    5. Total interest = Total − Principal = ₹6,24,445
    Detailed Breakdown
    YearPrincipal PaidInterest PaidBalance
    1₹1,53,227₹1,50,265₹13,46,773
    2₹1,70,113₹1,33,379₹11,76,660
    3₹1,88,860₹1,14,632₹9,87,800
    4₹2,09,673₹93,819₹7,78,126
    5₹2,32,780₹70,712₹5,45,346
    6₹2,58,433₹45,059₹2,86,913
    7₹2,86,913₹16,579₹0
    How this is calculated
    EMI = P × r × (1 + r)ᴺ / ((1 + r)ᴺ − 1)
    • P = principal, r = monthly interest rate, N = total months.
    • Uses the reducing-balance method used by all Indian banks and NBFCs.
    • Total interest = EMI × N − P.
    Written by Taxpex CA Team
    Chartered Accountants (ICAI) · Reviewed by Taxpex Editorial Board
    Last updated 10 Nov 2025
    When to use this

    Is this the right calculator for you?

    • Estimating EMI after moratorium for MBA / MS / medical courses.
    • Comparing bank vs NBFC vs international lender (MPower, Prodigy) offers.
    • Modelling partial-collateral vs full-collateral vs unsecured options.
    Overview

    Understanding the Education Loan

    Education loans in India are offered by all major banks — SBI, BOB, Canara, Axis, ICICI — for domestic (₹10–40 L) and abroad studies (₹40 L–₹1.5 Cr). Rates range 8.5% to 13% and moratorium equals course duration + 6–12 months. This calculator estimates EMI post-moratorium so students and parents can plan repayment realistically.

    Under Section 80E of the Income Tax Act, the entire interest paid on an education loan (no cap) is deductible for 8 years starting from the year repayment begins. This makes education loans the most tax-efficient way to fund higher studies vs draining savings or selling investments.

    Worked examples

    Real-world scenarios, step-by-step

    ₹40 L MS loan @ 10.5% for 10 years post-moratorium

    US MS programme, 2-year course + 1-year moratorium.

    • During moratorium: interest accrues (~₹4.2 L/year × 3)
    • Sanctioned ₹40 L → outstanding at repayment start ≈ ₹52 L
    • EMI ≈ ₹70,180 for 120 months
    EMI ≈ ₹70,180/month post-moratorium.
    Rates & reference

    Section 80E — key rules

    ItemRule
    Who can claimIndividual — self, spouse, children, legal ward
    Deduction100% of interest (no cap)
    RegimeOld regime only
    Duration8 years from repayment start OR till interest fully paid
    LenderScheduled bank, notified financial institution, approved charitable institution
    Pro tips

    Common mistakes to avoid

    Servicing interest during moratorium out of pocket — defeats the tax-planning benefit.

    Claiming 80E without a valid lender certificate.

    Choosing max tenure — interest cost balloons beyond degree ROI.

    Need a CA to review your numbers? Book a free consult — we'll double-check within 24 hours.

    CA insights

    Expert tips from senior CAs

    • Route interest payments through the student's account post-employment to maximise 80E.

    • Refinance abroad loans (MPower, Prodigy) to an Indian bank post-return for cheaper rate.

    Frequently asked questions

    How is an education loan EMI calculated?+

    EMI is computed using the standard reducing-balance formula: EMI = P × r × (1+r)^N / ((1+r)^N − 1), where P is the principal, r the monthly interest rate and N the tenure in months.

    Does this include processing fees or GST?+

    No. Processing fees, insurance, GST on fees and stamp duty are excluded and vary per lender. Add them separately to arrive at the true cost of the loan.

    Can prepayment reduce my interest?+

    Yes. Any principal prepayment reduces the outstanding balance and therefore future interest. Prepaying earlier in the tenure saves the most interest.

    Keep exploring

    People also ask

    How is an education loan EMI calculated?+

    EMI is computed using the standard reducing-balance formula: EMI = P × r × (1+r)^N / ((1+r)^N − 1), where P is the principal, r the monthly interest rate and N the tenure in months.

    via Education Loan Calculator
    How is this loan EMI calculated?+

    EMI is computed using the standard reducing-balance formula: EMI = P × r × (1+r)^N / ((1+r)^N − 1), where P is the principal, r the monthly interest rate and N the tenure in months.

    via EMI Calculator
    Does this include processing fees or GST?+

    No. Processing fees, insurance, GST on fees and stamp duty are excluded and vary per lender. Add them separately to arrive at the true cost of the loan.

    via EMI Calculator
    How is a personal loan EMI calculated?+

    EMI is computed using the standard reducing-balance formula: EMI = P × r × (1+r)^N / ((1+r)^N − 1), where P is the principal, r the monthly interest rate and N the tenure in months.

    via Personal Loan Calculator
    Does this include processing fees or GST?+

    No. Processing fees, insurance, GST on fees and stamp duty are excluded and vary per lender. Add them separately to arrive at the true cost of the loan.

    via Personal Loan Calculator

    Cite this page

    This dataset is free to reference in articles, research and reports. Attribution to Taxpex Consultancy is all we ask. Data last verified 31 July 2026.

    Citation (APA)
    Taxpex Consultancy. (2026). Education Loan Calculator — Taxpex. Retrieved from https://taxpex.com/tools/loans-emi/education-loan-calculator
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