Education loan EMI calculator
A Rs 10,00,000 education loan at 10% repaid over 7 years after a 4 year moratorium has an EMI of Rs 23,242 when moratorium interest is added to the loan.
Results update as you type. Nothing you enter is stored.
| Year | Principal paid | Interest paid | Balance |
|---|---|---|---|
| 1 | Rs 1,45,446 | Rs 1,33,454 | Rs 12,54,554 |
| 2 | Rs 1,60,676 | Rs 1,18,223 | Rs 10,93,877 |
| 3 | Rs 1,77,501 | Rs 1,01,398 | Rs 9,16,376 |
| 4 | Rs 1,96,088 | Rs 82,812 | Rs 7,20,288 |
| 5 | Rs 2,16,621 | Rs 62,279 | Rs 5,03,667 |
| 6 | Rs 2,39,304 | Rs 39,596 | Rs 2,64,362 |
| 7 | Rs 2,64,362 | Rs 14,537 | Rs 0.00 |
| Tenure | EMI | Total interest |
|---|---|---|
| 1 yr | Rs 1,23,082 | Rs 76,987 |
| 2 yr | Rs 64,603 | Rs 1,50,470 |
| 3 yr | Rs 45,174 | Rs 2,26,266 |
| 4 yr | Rs 35,508 | Rs 3,04,366 |
| 5 yr | Rs 29,746 | Rs 3,84,752 |
| 7 yr | Rs 23,242 | Rs 5,52,299 |
| 10 yr | Rs 18,501 | Rs 8,20,132 |
How it works
Education loans usually start repayment after the course plus a short period, called the moratorium. Interest still runs during it. If you pay that interest monthly, the loan stays at the original amount; if not, the lender adds it to the loan, raising the EMI.
This calculator uses simple interest for the moratorium on the full loan, which is a conservative view; lenders that disburse in instalments charge interest only on the amount drawn.
Formula
Moratorium interest = P x r x months / 12; EMI on (P + that interest) when capitalised
Frequently asked questions
How is EMI calculated?
With the reducing balance formula EMI = P r (1+r)^n / ((1+r)^n - 1), where r is the monthly rate and n the number of months.
Why is most of the early EMI interest?
Interest is charged on the outstanding balance, which is highest at the start, so early EMIs repay little principal.
What is the moratorium on an education loan?
A period, usually the course duration plus some months, during which you need not repay EMIs; interest may still accrue.
Related
This tool is for information only and is not investment, tax or legal advice. Results depend on the inputs and assumptions you enter; check important figures with the official source or a qualified professional.