§ Tools / Series 03 · Personal finance · Debt service
Education loan EMI calculator
One question: how much will I actually owe each month after the course ends? Models the moratorium — the no-EMI grace window during the course and the first year after — with three explicit treatments for what happens to the interest that accrues while you’re not paying. Most casual calculators silently pick one assumption and hide the rest; this one shows the consequence of each on the same screen.
§ Not personalised advice
Moratorium model is a simplification of real lender contracts. Job-date-specific early repayment, subsidy schemes (e.g. India’s CSIS / Padho Pardesh), and partial disbursement schedules are out of scope. Country-specific repayment plans (US income-based, UK SLC Plan 1/2) are not modelled.
3
Treatments
7
Loan presets
5
Rate scenarios
120
Months amortised
v1
Methodology
Moratorium interest treatment
§ Selected treatmentaccrued_simple_added_to_principal
Simple interest accrues during course + grace; added to principal in one go when repayment starts.
Matches the typical India education-loan explanation (SBI/RBI scheme rules).
Monthly EMI · after moratorium
₹0.40 lakhs / month
on ₹30.0 lakhs principal at repayment start (10% p.a. · 120 months)
Sanctioned loan amount
₹20.0 lakhs
20 lakhs
Moratorium interest
₹10.0 lakhs
added to principal
Principal at repayment start
₹30.0 lakhs
50.0% above sanction
Total interest payable
₹27.6 lakhs
over full life of loan
Total payment
₹47.6 lakhs
sum of all outflows
Moratorium window
60 mo
48 course + 12 grace
§ The whole point of this calculator
Same loan, three treatments — what each one costs
Repayment principal Repayment interest Moratorium interest paid
§ Repayment trajectory
Year-by-year — opening balance, EMI, principal, interest, closing balance
§ Outstanding balance over time
Y1Y2Y3Y4Y5Y6Y7Y8Y9Y10
Outstanding balance Yearly interest
| Year | Opening balance | EMI paid | Principal | Interest | Closing balance | % interest |
|---|---|---|---|---|---|---|
| Y1 | ₹30.0 lakhs | ₹4.76 lakhs | ₹1.84 lakhs | ₹2.92 lakhs | ₹28.2 lakhs | 61% |
| Y2 | ₹28.2 lakhs | ₹4.76 lakhs | ₹2.03 lakhs | ₹2.72 lakhs | ₹26.1 lakhs | 57% |
| Y3 | ₹26.1 lakhs | ₹4.76 lakhs | ₹2.25 lakhs | ₹2.51 lakhs | ₹23.9 lakhs | 53% |
| Y4 | ₹23.9 lakhs | ₹4.76 lakhs | ₹2.48 lakhs | ₹2.28 lakhs | ₹21.4 lakhs | 48% |
| Y5 | ₹21.4 lakhs | ₹4.76 lakhs | ₹2.74 lakhs | ₹2.02 lakhs | ₹18.7 lakhs | 42% |
| Y6 | ₹18.7 lakhs | ₹4.76 lakhs | ₹3.03 lakhs | ₹1.73 lakhs | ₹15.6 lakhs | 36% |
| Y7 | ₹15.6 lakhs | ₹4.76 lakhs | ₹3.34 lakhs | ₹1.41 lakhs | ₹12.3 lakhs | 30% |
| Y8 | ₹12.3 lakhs | ₹4.76 lakhs | ₹3.70 lakhs | ₹1.06 lakhs | ₹8.59 lakhs | 22% |
| Y9 | ₹8.59 lakhs | ₹4.76 lakhs | ₹4.08 lakhs | ₹0.68 lakhs | ₹4.51 lakhs | 14% |
| Y10 | ₹4.51 lakhs | ₹4.76 lakhs | ₹4.51 lakhs | ₹0.25 lakhs | ₹0.0 lakhs | 5% |
| Total | — | ₹47.6 lakhs | ₹30.0 lakhs | ₹17.6 lakhs | — | 37% |
§ Rate sensitivity
Same loan, nearby rates — banks negotiate, rates change between offer and disbursement
-1.00 pp
9.00% p.a.
₹0.37 lakhs/mo
-0.50 pp
9.50% p.a.
₹0.38 lakhs/mo
+0.00 pp
10.00% p.a.
₹0.40 lakhs/mo
your rate
+0.50 pp
10.50% p.a.
₹0.41 lakhs/mo
+1.00 pp
11.00% p.a.
₹0.43 lakhs/mo
§ Formula trace
- principal = loanAmount × unit = 20 × 100,000 = 2,000,000
- courseMonths = round(courseYears × 12) = round(4 × 12) = 48
- noEmiMonths = courseMonths + moratoriumMonths = 48 + 12 = 60
- monthlyRate = 10.0000% / 12 = 0.833333%/month
- repaymentMonths = round(tenureYears × 12) = 120
- moratoriumInterest = principal × annualRate × noEmiMonths/12 = 2,000,000 × 0.1000 × 60/12 = 1000000.00
- repaymentPrincipal = principal + moratoriumInterest = 2,000,000 + 1000000.00 = 3000000.00
- emi = P × r × (1+r)^N / ((1+r)^N − 1), with P=3000000.00, r=0.008333, N=120 → 39645.22
- repaymentInterest = emi × N − repaymentPrincipal = 39645.22 × 120 − 3000000.00 = 1757426.53
- totalPayment = emi × N = 4757426.53
- totalInterestPayable = totalPayment − originalPrincipal = 4757426.53 − 2,000,000 = 2757426.53
§ Input audit
courseYearsused
currencyused
loanAmountused
moratoriumMonthsused
rateConventionused
ratePctused
tenureYearsused
treatmentused
unitused
§ Warnings
- Moratorium model is a simplification. Job-date-specific early repayment, subsidy schemes (e.g. India CSIS / Padho Pardesh), and partial disbursement schedules are not modelled in v1.
§ Same engine, headlessly
One deterministic kernel reachable as a stateless REST endpoint and as an MCP tool, with a versioned methodology stamp.
POST/api/v1/financial-calculators/education-loan-emi/calculate
POST/api/v1/financial-calculators/education-loan-emi/run · alias
GET/api/v1/financial-calculators/education-loan-emi/schema
GET/api/v1/financial-calculators/education-loan-emi/defaults
CRUD/api/v1/user/financial-calculator-workbooks?calculator_id=education_loan_emi · individual+
MCP tool
calculate_education_loan_emimethodology_version = financial-calculators.v1 · stable_id = education_loan_emi · canonical = /en/tools/education-loan-emi-calculator
§ FAQ
Five things worth knowing about education loan EMIs
Q01What is the moratorium, and why does it matter so much?+
It’s the no-EMI grace window — typically your course duration plus one year after. RBI’s scheme rule is "course period plus one year, or six months after getting a job, whichever is earlier", and bank implementations (e.g. SBI) follow the same pattern. Interest still accrues while you’re not paying. How that accrued interest is handled — added once to principal, paid monthly, or compounded — can change the total cost of the loan by tens of thousands. Most calculators silently pick one assumption and hide the rest; this one surfaces all three.
Q02Why is "principal at repayment start" higher than my loan amount?+
Because EMI is calculated on the inflated balance, not the original sanction. Under Simple → principal (default), the interest that piles up over course + grace gets added to principal in one go before repayment starts. Under Capitalise monthly, it compounds. Only Pay during moratorium keeps the principal flat — at the cost of monthly outflow during studies. The metric tile shows you which number your EMI is actually amortising.
Q03Should I pay interest during the moratorium?+
Almost always cheaper in total — but it pulls cash out during studies. The Treatment comparison view lets you see the trade explicitly: EMI under each treatment, repayment principal under each treatment, and the total payment over the life of the loan. The gap between Pay-during and Capitalise-monthly is often 15-25% of the original loan, all interest you can avoid.
Q04Does this work for US/UK student loans?+
Currency and amount-unit selection make the tool work outside India for the simple post-course-grace pattern. Country-specific repayment schemes (US income-based, UK Plan 1/2 SLC) are not modelled and would understate complexity — that’s out of scope and called out in warnings.
Q05Why don’t I just divide the loan by the months?+
Because EMI is an amortising payment — early months are mostly interest, later months are mostly principal. EMI = P × r × (1+r)^N / ((1+r)^N − 1). The year-wise schedule shows that curve clearly: the first year of a 10-year loan at 10% is ~60% interest; the last year is ~3%. Useful for thinking about prepayment timing.
§ Adjacent in the suite