# Education Loan EMI Calculator with Moratorium and 80E > Education loan EMI calculator: add the course and grace period to see interest that builds up in the moratorium, your EMI after it and the 80E tax saving. Source: https://trykosh.com/tools/education-loan-emi-calculator Free tool - Loans and credit cards # Education loan EMI calculator with moratorium An education loan doesn't start with EMIs. Interest builds up while you study and for a few months after, then gets added to the loan. See what that does to your EMI and how much 80E gives back. Rules checked 25 October 2026Free - no sign-upRuns in your browser EMI after the moratorium INR 24,778 starts 2 years 6 months after the first disbursal, runs 10 years Interest added in moratorium**INR 3,75,000** Total interest**INR 14,73,392** 80E tax saving (8 yrs)**INR 2,16,461** Amount borrowed **INR 15,00,000**Moratorium interest **INR 3,75,000**Interest in EMIs **INR 10,98,392** Loan amount INR 15,00,000 Simple interest over 2 years 6 months of moratorium INR 3,75,000 Added to the loan (capitalised) INR 3,75,000 Principal when EMIs begin INR 18,75,000 Interest inside the EMIs INR 10,98,392 Total interest on the loan INR 14,73,392 Interest deductible under 80E (first 8 years of paying) INR 10,40,679 Tax saved at 20% + 4% cess INR 2,16,461 EMI schedule after the moratorium, year by year Loan year Principal paid Interest paid Balance left Year 1 INR 1,15,016 INR 1,82,323 INR 17,59,984 Year 2 INR 1,27,060 INR 1,70,280 INR 16,32,924 Year 3 INR 1,40,364 INR 1,56,975 INR 14,92,560 Year 4 INR 1,55,062 INR 1,42,277 INR 13,37,498 Year 5 INR 1,71,299 INR 1,26,040 INR 11,66,198 Year 6 INR 1,89,237 INR 1,08,102 INR 9,76,961 Year 7 INR 2,09,052 INR 88,287 INR 7,67,909 Year 8 INR 2,30,943 INR 66,396 INR 5,36,966 Year 9 INR 2,55,126 INR 42,214 INR 2,81,841 Year 10 INR 2,81,841 INR 15,499 INR 0 Assumes the whole loan is paid out on day one. Fees usually go out term by term, so real moratorium interest is often lower. ## Upload your statement and Kosh does this for you. Upload a bank or card statement and Kosh finds every EMI and card charge, then builds the fastest way out of debt that still fits your month. [Start free](/signup?via=tool-education-loan-emi-calculator) ## How the education loan EMI calculator works Most Indian education loans come with a moratorium: the course period plus a grace period, usually 6 to 12 months after the course ends or after you get a job, whichever comes first. You don't have to pay EMIs during that time, but interest still runs. Banks typically charge simple interest during the moratorium, and if you don't pay it, they add it to the principal (capitalise it) when repayment starts. The calculator works out that simple interest, adds it to the loan, and then computes the EMI on the bigger balance over the repayment period you choose, up to 15 years. Turn on 'I'll pay the interest during the moratorium' to see the alternative: you pay the monthly interest while studying, the loan doesn't grow, and the EMI later is smaller. Some lenders give a small rate concession for this. Section 80E lets you deduct the entire interest paid on a higher-education loan, with no upper limit, for 8 years starting from the year you begin paying interest. It is available only in the old regime and only on loans from banks or approved financial and charitable institutions. Pick your slab to see the tax saved; the calculator counts interest you actually pay, by loan year. Moratorium interest = P x rate x moratorium months / 1,200; EMI on (P + moratorium interest) P amount disbursed (assumed all on day one) Moratorium course length + grace period 80E saving interest paid in 8 years x slab rate x 1.04 ## Worked example: Ananya's master's degree Ananya borrows INR 25 lakh at 10.5% for a two-year master's, with a 12-month grace period, and doesn't pay interest while studying. Over three years INR 7,87,500 of simple interest builds up and is added to the loan, so she starts repaying INR 32,87,500. Her EMI over 12 years is INR 40,244 and total interest comes to INR 32,95,082. In the 30% slab under the old regime, 80E on the INR 21,47,697 of interest she pays in the first 8 years saves her INR 6,70,081 in tax. EMI after the moratorium INR 40,244 starts 3 years after the first disbursal, runs 12 years Interest added in moratorium**INR 7,87,500** Total interest**INR 32,95,082** 80E tax saving (8 yrs)**INR 6,70,081** Amount borrowed **INR 25,00,000**Moratorium interest **INR 7,87,500**Interest in EMIs **INR 25,07,582** Loan amount INR 25,00,000 Simple interest over 3 years of moratorium INR 7,87,500 Added to the loan (capitalised) INR 7,87,500 Principal when EMIs begin INR 32,87,500 Interest inside the EMIs INR 25,07,582 Total interest on the loan INR 32,95,082 Interest deductible under 80E (first 8 years of paying) INR 21,47,697 Tax saved at 30% + 4% cess INR 6,70,081 Assumes the whole loan is paid out on day one. Fees usually go out term by term, so real moratorium interest is often lower. [Load this example into the calculator ->](?amount=2500000&rate=10.5&grace=12&years=12&slab=30#calculator) ## Good to know - Ask for disbursal in instalments, semester by semester. Interest runs only on what has been paid out, so the real moratorium interest is usually lower than this all-on-day-one estimate. - Paying even the interest during the course stops the loan from growing and starts the 80E clock earlier, when you may not have taxable income. Weigh which matters more for you. - 80E covers loans for yourself, your spouse, your children, or a student for whom you are the legal guardian. Loans from relatives or employers don't qualify. - Government interest-subsidy schemes exist for students from lower-income families on loans up to set limits. Ask your bank which schemes your course qualifies for. ## Frequently asked questions Is interest charged during the moratorium on an education loan? Yes. Interest accrues from each disbursal, usually as simple interest. If you don't pay it during the course and grace period, it is added to the principal when EMIs begin, which raises the EMI and the total interest. How long is the moratorium on an education loan? Typically the course duration plus 6 to 12 months, or until you find a job if that comes first. The exact terms vary by lender and scheme, so check your sanction letter. How much tax can I save with section 80E? The whole interest paid in a year is deductible, with no cap, for up to 8 years from the year you start paying interest. The saving equals that interest times your slab rate plus cess, and it is available only in the old regime. Can parents claim 80E on a child's education loan? Yes, if the loan is in the parent's name and the parent pays the interest. The deduction goes to whoever is the borrower and pays, not to the student automatically. Should I pay interest during the course? If you or your family can, it usually helps: the loan doesn't grow, EMIs are lower later, and some banks reduce the rate slightly. The calculator above shows both options side by side when you toggle it. ## Sources and assumptions - [Income Tax Department](https://www.incometax.gov.in/) - [Reserve Bank of India](https://www.rbi.org.in/) Rules and rates last checked on 25 October 2026. Results are estimates for planning and education, not tax, legal or investment advice. Kosh is an educational financial planning tool by Primedepth Labs. It is not a SEBI-registered investment adviser and does not offer personalised investment advice, hold your money or execute trades. Markets carry risk; read scheme documents carefully and consult a registered adviser before acting.