Education Loan EMI Calculator
Work out your monthly EMI, total interest and the Section 80E tax you save on your education-loan interest — live, in one screen.
- Free — no sign-up
- Instant, on-screen results
- Built by our CA · CS team
- Rules cited on the page
Enter your figures — the result on the right updates as you type.
Amortization summary — first 5 years
Interest & principal split per year| Year | Principal paid | Interest paid | Total paid | Balance |
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Claim your Section 80E deduction the right way
Our CAs make sure every rupee of education-loan interest is claimed and your ITR is filed accurately.
Disclaimer: Indicative estimate. EMI assumes a fixed reducing-balance rate; actual bank EMIs may include processing fees, moratorium interest and rate resets. 80E benefit shown is for the first year of repayment at your chosen slab.
Section 80E — a full deduction on education-loan interest
Section 80E of the Income-tax Act lets you deduct 100% of the interest paid on an education loan from your taxable income — with no upper limit. The benefit runs for a maximum of 8 years from the year you start repaying, or until the interest is fully paid, whichever is earlier. It is available only under the old regime.
How the EMI is calculated
Each EMI is fixed, but its split between interest and principal changes every month. Early EMIs are mostly interest; later ones are mostly principal. The formula for a fixed reducing-balance loan is:
| EMI | P × r × (1+r)ⁿ ÷ ((1+r)ⁿ − 1) |
| P | Loan principal |
| r | Monthly rate = annual% ÷ 12 ÷ 100 |
| n | Number of months = years × 12 |
Worked example — ₹10,00,000 loan
A ₹10,00,000 education loan at 10.5% for 7 years, with the borrower in the 20% tax slab:
Section 80E — key conditions
No upper limit
Unlike 80C (₹1.5L) or the home-loan interest cap, 80E has no maximum. The entire interest you pay in the year is deductible — only the interest, never the principal.
Up to 8 years
You can claim from the year repayment begins for a maximum of 8 consecutive years, or until the interest is fully repaid — whichever comes first.
Who & what qualifies
The loan must be for the higher education of yourself, spouse, children or a legal ward, and taken from a bank or approved financial/charitable institution — not from family or friends.
Old regime only
80E is available only if you file under the old tax regime. Weigh the deduction against the new regime's lower slab rates before choosing your regime for the year.
Questions people ask
Short answers on Education Loan EMI (80E). Tap a question to open it.
01How does an education loan moratorium affect the EMI?
Repayment usually starts after the course period plus six months to a year. Interest accrues during the moratorium; if it is not serviced, it is capitalised and the EMI is calculated on the higher balance.
02What is the tax benefit on an education loan?
Section 80E allows a deduction for the entire interest paid, with no monetary cap, for up to eight consecutive years starting from the year repayment begins — or until the interest is fully paid, whichever is earlier. Principal repayment gets no deduction.
03Who can claim the 80E deduction?
An individual who takes the loan for higher education of self, spouse, children or a student for whom they are the legal guardian, from a bank or a notified financial institution or approved charitable institution. A loan from a relative or employer does not qualify.
04Is 80E available under the new tax regime?
No. Section 80E is one of the Chapter VI-A deductions unavailable under the new regime. If your education loan interest is large, compare both regimes before choosing.
05Is collateral needed for an education loan?
Typically no security is required up to ₹4 lakh, a third-party guarantee between ₹4 lakh and ₹7.5 lakh, and tangible collateral above ₹7.5 lakh — though banks relax this for premier institutions.
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Disclaimer: This tool gives indicative results for general guidance only and is not professional advice. Please verify with a qualified CA before acting on the numbers.