Finacolada
Loans

Education Loan EMI Calculator with Study-Period Interest

What will my education loan EMI be after the course?

Education loans usually start EMIs only after your course ends, but interest keeps building during the study period. Enter your course length plus grace months to see how much that moratorium adds and what your EMI will be once repayment begins.

Your result

A ₹10 L education loan at 9.5% for 10 yrs has an EMI of ₹17,857, so you repay ₹21.43 L in total, of which ₹11.43 L is interest. Interest of ₹3.8 L builds up during the 4 yrs study period and is added to the loan.

Monthly EMI
₹17,857
for 10 yrs
Total interest
₹11.43 L
53% of total payout
Total payout
₹21.43 L
principal plus interest
Interest in year 1
59%
of your EMIs; 5% by year 10
Balance when EMIs start
₹13.8 L
₹10 L plus ₹3.8 L interest
  • InfoEMIs are rounded to the nearest rupee and the last EMI is adjusted to clear the loan exactly. Your lender's rounding can differ by a few rupees.
  • NoteCharts and the schedule start when EMIs start. Real education loans are often paid out in stages, so interest during study can be lower than shown.

Change the numbers

Advanced options (1)

Breakdown

Where your ₹21.43 L goes

Where your ₹21.43 L goesDonut chart. Principal: ₹10 L (46.7%); Interest: ₹11.43 L (53.3%).
  • Principal₹10 L · 46.7%
  • Interest₹11.43 L · 53.3%
For every ₹100 you borrow you pay about ₹114 in interest over the full tenure.
Show the numbers
PartValueShare
Principal₹10 L46.7%
Interest₹11.43 L53.3%

How each year's EMIs split: principal versus interest

  • Principal repaid
  • Interest paid
Loan year 10₹2.04 LPrincipal repaid₹10,629Interest paid₹2.14 LTotal
How each year's EMIs split: principal versus interestStacked area chart of Principal repaid, Interest paid by loan year, from 1 to 10. At loan year 10: Principal repaid ₹2.04 L, Interest paid ₹10,629, Total ₹2.14 L.
In year 1 about 59% of your EMIs goes to interest; by year 10 only 5% does. Principal here includes the study-period interest added to the loan.
Show the numbers
Loan yearPrincipal repaidInterest paidTotal
1₹86,903₹1.27 L₹2.14 L
2₹95,528₹1.19 L₹2.14 L
3₹1.05 L₹1.09 L₹2.14 L
4₹1.15 L₹98,853₹2.14 L
5₹1.27 L₹87,397₹2.14 L
6₹1.39 L₹74,803₹2.14 L
7₹1.53 L₹60,960₹2.14 L
8₹1.69 L₹45,743₹2.14 L
9₹1.85 L₹29,016₹2.14 L
10₹2.04 L₹10,629₹2.14 L

Balance still owed and interest paid so far

  • Balance still owed
  • Interest paid so far
Loan year 10₹0Balance still owed₹7.63 LInterest paid so far
Balance still owed and interest paid so farLine chart of Balance still owed, Interest paid so far by loan year, from 0 to 10. At loan year 10: Balance still owed ₹0, Interest paid so far ₹7.63 L.
The balance falls slowly at first because early EMIs are mostly interest; the interest line climbs fastest in the early years.
Show the numbers
Loan yearBalance still owedInterest paid so far
0₹13.8 L₹0
1₹12.93 L₹1.27 L
2₹11.98 L₹2.46 L
3₹10.93 L₹3.55 L
4₹9.77 L₹4.54 L
5₹8.5 L₹5.42 L
6₹7.11 L₹6.16 L
7₹5.57 L₹6.77 L
8₹3.89 L₹7.23 L
9₹2.04 L₹7.52 L
10₹0₹7.63 L

Repayment schedule

PeriodEMIs paidInterestPrincipalBalance
Year 1₹2,14,284₹1,27,381₹86,903₹12,93,097
Year 2₹2,14,284₹1,18,756₹95,528₹11,97,569
Year 3₹2,14,284₹1,09,275₹1,05,009₹10,92,559
Year 4₹2,14,284₹98,853₹1,15,431₹9,77,128
Year 5₹2,14,284₹87,397₹1,26,887₹8,50,241
Year 6₹2,14,284₹74,803₹1,39,481₹7,10,760
Year 7₹2,14,284₹60,960₹1,53,324₹5,57,437
Year 8₹2,14,284₹45,743₹1,68,541₹3,88,896
Year 9₹2,14,284₹29,016₹1,85,268₹2,03,628
Year 10₹2,14,257₹10,629₹2,03,628₹0

Worked example

Example with the default numbers — change them above.

Education loan amount: ₹10,00,000 · Interest rate (per year): 9.5% · Loan tenure: 10 yrs · Study period plus grace (months): 48 months

A ₹10 L education loan at 9.5% for 10 yrs has an EMI of ₹17,857, so you repay ₹21.43 L in total, of which ₹11.43 L is interest. Interest of ₹3.8 L builds up during the 4 yrs study period and is added to the loan.

Monthly EMI ₹17,857 · for 10 yrs
Total interest ₹11.43 L · 53% of total payout
Total payout ₹21.43 L · principal plus interest
Interest in year 1 59% · of your EMIs; 5% by year 10
Balance when EMIs start ₹13.8 L · ₹10 L plus ₹3.8 L interest

How the Education Loan EMI Calculator works

  1. Enter the loan amount, the yearly rate and the repayment tenure that starts after your study period.
  2. Enter the study period plus any grace months. During this time, simple interest builds up on the loan.
  3. Choose whether you will pay that interest every month while studying, or let it be added to the loan when EMIs start.
  4. The EMI is worked out on the balance at the first EMI, using the usual reducing-balance formula over your repayment tenure.
  5. The result shows the study-period interest separately, so you can see what paying it early would save.

Education loan formulas

Study-period interest = loan × yearly rate ÷ 12 ÷ 100 × study months (simple interest)
Balance at first EMI = loan + study-period interest (if not paid monthly)
EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1)
P = balance at the first EMI, r = yearly rate ÷ 12 ÷ 100, n = repayment months

Assumptions and limits

  • Interest during the study period is simple interest on the full loan amount, as if all of it is disbursed on day one. Loans paid out in stages cost less interest.
  • When you do not pay it monthly, the accrued interest is added to the loan at the first EMI and then earns interest. Some lenders charge differently, so check your sanction letter.
  • The rate is fixed over the tenure. Many education loans are floating, which changes your EMI or tenure.
  • Charts and the schedule cover the repayment phase only.
  • Tax benefit on education loan interest, processing fees and insurance are not included.

Frequently asked questions

How is education loan EMI calculated?

First, interest builds up during the study period. Then EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1) is applied to the balance when repayment starts. A ₹10 lakh loan at 9.5% with a 48-month study period adds ₹3.8 lakh of simple interest. Added to the loan, the EMI over 10 years is ₹17,857.

What is the moratorium period in an education loan?

It is the time before EMIs begin, usually the course duration plus a grace period after it, often six months to a year, though terms vary. Interest still accrues during this period. You may be allowed to pay it monthly or let it be added to the loan. Check what your lender allows.

Is it worth paying the interest during the study period?

It usually lowers the total cost because the interest does not get added to the loan and then earn more interest. On ₹10 lakh at 9.5% with 48 months of study, adding it to the loan and repaying over 10 years costs about ₹11.43 lakh in interest, against about ₹9.33 lakh if you pay it monthly.

Can I claim a tax deduction on education loan interest?

Under the old tax regime, section 129 of the Income-tax Act, 2025 (old Section 80E) lets you deduct the interest, not the principal, on a higher-education loan from a bank or approved institution. It runs for eight years from the first year you pay interest, which can be during your studies, with no upper limit. The new regime does not allow it. Confirm with the current law or a tax professional.

When do education loan EMIs start?

Typically after the course ends plus a grace period or after you get a job, whichever comes first, but the exact rule depends on your lender and loan scheme. Enter your own study period plus grace months in the calculator, and use the repayment tenure your lender offers after that.

Can I prepay an education loan?

Yes. Most education loans carry no prepayment penalty (the banks' IBA model scheme says none), and RBI bars prepayment charges on floating-rate loans to individuals. A fixed-rate loan can carry a charge only if your sanction letter states it. Paying early reduces the principal when interest is highest, so the loan prepayment calculator can show the interest you would save.

Sources

Logic and rates last verified on .

Embed this calculator

Free to use on your blog or website. Keep the credit link below the iframe visible: it is the only thing we ask in return.