Student Loan Repayment Calculator in India: A Detailed Guide!

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student loan repayment calculator

A common way of pursuing higher education in India or Abroad is by opting for an education loan. This makes the cost of education a bit more affordable for an individual by diving the amount into Equated Monthly Installments (EMI) which you need to repay on a monthly frequency. In today’s blog, we will provide you with a detailed insight into student loan repayment calculator that are available in India, so that you can plan and manage your finances accordingly. Don’t miss out on this informative blog and continue reading!

What is Student Loan Repayment Calculator?

A student loan repayment calculator is an online tool that helps you calculate your monthly EMI and the total interest payable on your student loan effectively. It also helps you to manage your finances, compare different loans, manage different interest rates and even show you a detailed breakdown of the interest paid plus the principal amount paid. Student Loan Repayment Calculator is undoubtedly an effective and powerful tool to manage your debt from an existing student loan or education loan.

Also Read- The Best Education Loan in India for Study Abroad Purposes

How Does a Student Loan Repayment Calculator Work?

A student loan repayment calculator works on a very basic and simple formula:

  • Loan amount
  • Interest rate
  • Tenure 

The formula for calculating EMI is:

EMI = [P multiplied with R multiplied (1 plus R)N] divided by [(1 plus R)N minus 1]


P stands for the  Loan amount

R is the Interest rate per month (interest rate/12)

N is the Tenure in months (tenure x 12)

For example:

If you take a student loan of INR 10 lakh at an interest rate of 10% p.a for a tenure of 10 years, your EMI will be:

EMI = [10,00,000 x 0.0083 x (1+0.0083)^120] / [(1+0.0083)^120-1]

EMI = Rs. 13,215

The total interest payable on this loan will be:

Total interest = EMI x tenure – Loan amount

Total interest = 13,215 x 120 – 10,00,000

Total interest = INR 5,85,800

For example, in the first month, your interest payment will be Rs. 8,333 (10% of 10 Lakh) and your principal payment will be Rs. 4,882 (13,215 – 8,333). Your outstanding balance will be INR  9,95,118 (10 lakh – 4,882).

In the second month, your interest payment will be Rs. 8,276 (10% of 9,95,118) and your principal payment will be Rs. 4,939 (13,215 – 8,276). Your outstanding balance will be INR 9,90,179 (9,95,118 – 4,939).

This way, you can see how your EMI is divided into interest and principal amounts and how your loan balance reduces over time.

Benefits of Student Loan Repayment Calculator

Here are some of the key benefits of using a student loan repayment calculator:

  • It makes your calculations convenient, manages your finances easily and keeps track of your existing education or student loan.
  • It provides a detailed breakdown of how much you have to pay every month and for how long
  • It also reminds you to avoid defaulting on your loan or paying extra interest charges that can also affect your credit history or CIBIL score negatively 
  • It helps you compare different loan offers from various banks and choose the best one according to your needs. 


Different Student Loan Calculator Options

Here are some of the different student loan calculator options available in the market:

  • SBI Student Loan Calculator, which is an online tool provided by the State Bank of India
  • Axis Bank Education Loan EMI Calculator is the same as SBI student loan calculator which is provided by Axis Bank on their official website.
  • Student Loan Calculator helps you calculate your student loan efficiently and also compares different loan options available in the market.


1. How does a Student Loan Repayment Calculator work?

In layman’s terms, A student loan repayment calculator works by taking some inputs from you, such as:
The loan amount you want to borrow
The interest rate charged by the bank
The loan tenure or the duration of the loan
The grace period or the time before you start repaying the loan
The repayment mode or the frequency of payment
Based on your inputs it will calculate and show you the results. 

2. What is a moratorium period?

It is a grace period that is provided by the bank you have taken an education loan before you start repaying your loan. For example- “Some banks offer 6 months moratorium period after completing your degree, which means your repayment will start right after 6 months of completing your degree).

3. What are the tax benefits of education loans?

According to the Indian Taxation law, you can claim a deduction for the interest paid on education loans under Section 80E of the Income Tax Act. 

This was everything related to the student loan repayment calculator. Contact Leverage Edu or reach out to Fly Finance for all finance-related concerns to simplify your study abroad experience with zero hindrances.

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