Student Loan Calculator
Forecast your monthly education loan payments and total cost based on the loan principal and repayment term.
Repayment Summary
Fixed Monthly EMI
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Total Loan Principal
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Total Interest Payable
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Total Repayment Cost
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Planning Your Education Loan Repayment
The **Student Loan Calculator** helps students and families understand the long-term financial commitment of an education loan. Unlike a home loan, student loans often have higher effective interest rates and may require payments to begin while the student is still in school.
The EMI Formula and Loan Cost
The fixed monthly payment (EMI) is calculated using the standard annuity formula: $$E = P \cdot \frac{r \cdot (1+r)^n}{(1+r)^n – 1}$$ Where: $\text{P}$ is the Principal, $\text{r}$ is the Monthly Rate, and $\text{n}$ is the Total Months.
Common Student Loan Considerations (FAQ)
What is the tax benefit for education loans in India?
In India, the entire interest paid on an education loan is eligible for a deduction under **Section 80E** of the Income Tax Act. There is **no limit** on the amount of interest you can deduct, but this deduction is only available for a maximum of 8 years.
Should I choose a longer or shorter repayment term?
A **shorter tenure** results in a much higher monthly payment (EMI) but saves you thousands of rupees in **Total Interest Payable**. Given that education loans are high-interest, prioritizing the shortest affordable term is often the best financial strategy.