Education Loan EMI Calculator 2026
See your real monthly EMI and total interest. Enter your loan amount, bank interest rate and tenure — and add a moratorium to see how interest during your study years changes the cost.
Calculate Your Education Loan EMI
Assumptions & simplifications
- EMI uses the standard reducing-balance formula on the loan principal at the rate and tenure you enter.
- Moratorium: interest accrues during your study + grace years. If you don't service it, it is capitalised (added to the loan) when EMIs begin. We compound the accrual once a year — a simplification; banks usually compound monthly or quarterly, so the real capitalised amount can be slightly higher.
- Tick "I'll pay the interest during my study period" to model servicing it instead — the interest is then paid out of pocket during study (shown as simple interest) and the loan is not capitalised.
- The rate is treated as constant. Real education loans are usually floating (repo/EBLR-linked), so your EMI or tenure will change when the RBI repo rate moves.
- Figures are indicative and exclude processing fees, insurance and any bank rebate for servicing interest during study. Interest paid is deductible under Section 80E (old regime).
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During the moratorium (course period plus up to a year) you pay no EMI, but interest keeps accruing on the disbursed amount. If you don't service that interest while studying, it is added to your loan when EMIs begin — raising both the EMI and the total interest. Repayment then runs as equal monthly instalments over your chosen tenure. Compare rates first on our bank-wise interest rate guide, and remember the interest is tax-deductible under Section 80E.
Frequently Asked Questions
How is education loan EMI calculated?
EMI = P × r × (1 + r)^n ÷ [(1 + r)^n − 1], where P is the loan principal, r is the monthly interest rate (annual rate ÷ 12), and n is the number of monthly instalments. A higher rate or a shorter tenure raises the EMI; a longer tenure lowers the EMI but increases the total interest you pay.
What is a moratorium period in an education loan?
The moratorium is a repayment holiday covering your course period plus up to one year (or six months after you get a job). You don't pay EMIs during it, but interest still accrues on the disbursed amount. If you don't service that interest while studying, it is added to your loan (capitalised) when EMIs begin, so your EMI and total interest go up.
Should I pay interest during the study period?
If you can, yes. Paying the simple interest during the moratorium stops it from being added to your principal, which lowers both your EMI and your total interest after you graduate. Many banks also give a small interest concession (often 0.5–1%) for servicing interest during study. This calculator lets you compare both choices.
Is education loan interest tax deductible?
Yes. Under Section 80E of the Income Tax Act, the entire interest you pay on an education loan is deductible from taxable income with no upper limit, for up to 8 years from the start of repayment, under the old tax regime. The principal repayment does not qualify.
Does a longer tenure reduce my education loan cost?
No. A longer tenure lowers your monthly EMI but increases the total interest you pay over the life of the loan, because interest accrues for more years. A shorter tenure costs less overall but needs a higher monthly EMI. Use this calculator to find a balance you can afford.