Education Loan Cost Calculator

Calculate the true cost of an education loan, including interest accrued during the moratorium period, before your EMI repayments start.

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Enter your loan amount, interest rate, moratorium period, and repayment tenure to see your EMI and the true total cost, including moratorium interest.

Loan amount *

₹

Interest rate (per annum) *

Moratorium period (months) *

Typically course duration + a 6-12 month grace period, during which interest still accrues.

Repayment tenure after moratorium (months) *

Your result

₹17,187.50

Monthly EMI (after moratorium)

Interest accrued during moratorium₹3,28,270.60

Principal after moratorium₹13,28,270.60

Total interest during repayment₹7,34,229.40

Total repayment amount₹20,62,500

AI explanation

Formula

Interest during moratorium compounds monthly and is capitalized into the principal; EMI is then computed on the grown principal using the standard reducing-balance formula

Worked example

₹10L loan, 9.5% rate, 3-year moratorium, 10-year repayment

Worked example: ₹10L loan, 9.5% rate, 3-year moratorium, 10-year repayment
Field	Value
Loan amount	1000000
Interest rate (per annum)	9.5
Moratorium period (months)	36
Repayment tenure after moratorium (months)	120
Monthly EMI (after moratorium)	17187.5
Interest accrued during moratorium	328270.6
Principal after moratorium	1328270.6
Total interest during repayment	734229.4
Total repayment amount	2062500

Assumptions

Assumes interest accrued during the moratorium is capitalized (added to the principal) at the end of the moratorium, as most Indian education loan lenders do — some lenders instead require simple interest-only payments during the moratorium, which would produce a lower post-moratorium principal.
A moratorium of 0 months models a loan with EMI starting immediately.

Frequently asked questions

What is a moratorium period on an education loan?

A period — usually the course duration plus a grace period of 6-12 months — during which you don't have to pay EMIs. Interest typically still accrues during this time, though some lenders let you pay it as simple interest instead of letting it capitalize.

Why is my principal higher after the moratorium than what I borrowed?

Because interest accrued during the moratorium was added to (capitalized into) your original loan amount — your EMI is then calculated on this larger amount, not your original loan amount.

Can I avoid the interest capitalization?

Many lenders let you pay interest-only EMIs during the moratorium to avoid capitalization — check with your lender if this option is available and whether it reduces your total cost.

Related calculators

This calculator provides an estimate only, based on a simplified moratorium-interest-capitalization model. Actual education loan terms vary significantly by lender — verify the exact terms, including whether interest capitalizes, with your bank or NBFC before borrowing.

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