Should I pay interest during the moratorium?

Almost always yes if you can. Unpaid interest capitalizes — on large loans it can add 30–45% to the principal before EMI #1.

Is education loan interest tax-deductible?

In India, Section 80E allows full interest deduction for 8 years with no cap. In the US, the student-loan interest deduction caps at $2,500 with income phaseouts.

What happens if I prepay?

Most education loans allow penalty-free prepayment, which attacks principal directly and cuts total interest sharply. Confirm with your lender.

Education Loan Calculator

Estimate education-loan EMIs including the moratorium, when unpaid study-period interest capitalizes.

Estimate education loan EMI with moratorium instantly. Free student loan calculator with study-period interest, total payable and EMI.

About Education Loan

Estimate education-loan EMIs including the moratorium, when unpaid study-period interest capitalizes.

Education loans pause repayment during the course plus a grace year — but interest usually keeps accruing and gets added to the principal unless you service it. This calculator models both paths: tick the box if you will pay interest while studying, or watch it capitalize and inflate the EMI.

Enter the sanctioned amount, rate, study-plus-grace years, and repayment tenure. Compare offers by total interest, not just EMI. All math runs in your browser.

Where it is used

Students comparing loan offers, parents budgeting EMIs after graduation, and counselors explaining moratorium costs.

How to use the Education Loan

Loan Amount — enter the value (e.g. 500000).
Annual Interest Rate (%) — enter the value in % (e.g. 9).
Course + Grace Period (Years) — enter the value (e.g. 5).
Repayment Tenure (Years) — enter the value (e.g. 7).
Pay Interest During Study — enter the value.
Calculate — press the Calculate button to see the result instantly above.

Formula

Unpaid study interest capitalizes into principal; EMI = P x r(1+r)^n / ((1+r)^n − 1).

Examples

Example

loanAmount:500000

annualRate:9

courseYears:5

repayYears:7

payInterestDuringStudy:false

Result: EMI ≈ $11,664 after $225,000 capitalized interest

Frequently Asked Questions

Should I pay interest during the moratorium?: Almost always yes if you can. Unpaid interest capitalizes — on large loans it can add 30–45% to the principal before EMI #1.
Is education loan interest tax-deductible?: In India, Section 80E allows full interest deduction for 8 years with no cap. In the US, the student-loan interest deduction caps at $2,500 with income phaseouts.
What happens if I prepay?: Most education loans allow penalty-free prepayment, which attacks principal directly and cuts total interest sharply. Confirm with your lender.

Calculator Inputs