How to use this calculator
- Enter or choose loan amount.
- Enter or choose interest rate (per year).
- Enter or choose moratorium (course + grace period).
- Enter or choose repayment period.
- Enter or choose interest during the moratorium.
- The eMI after the moratorium updates as you type. Use Copy result or Share to keep it.
Method
Simple: Balance = L × (1 + r × m); Compounded: Balance = L × (1 + r)^m; Paid: Balance = L. EMI = Balance × r × (1 + r)ⁿ ÷ [(1 + r)ⁿ − 1]
- L
- loan amount (all disbursed at the start)
- r
- annual rate ÷ 12 ÷ 100
- m
- moratorium months
- n
- repayment months
Worked example
- Moratorium interest = 10,00,000 × 1% × 24 = ₹2,40,000, added to the loan.
- Balance at repayment = ₹12,40,000.
- EMI over 60 months at 1% a month = ₹27,583.12.
A ₹10 lakh loan at 12% with a two-year moratorium becomes ₹12.4 lakh, repaid at about ₹27,583 a month for five years.
What the result means
Paying the moratorium interest as it falls due (₹10,000 a month in the example) keeps the EMI at the level of the original loan, ₹22,244, and cuts total interest.
Assumptions and limits
- The whole loan is disbursed at the start; staged disbursements accrue less interest.
- The rate stays fixed.
- Interest subsidy schemes, processing fees and insurance are not included.
- Tax deduction for education-loan interest is not calculated.
Questions
Is interest charged during the moratorium?
Usually yes. It is either paid as you go or added to the loan when repayment starts; check your sanction letter.
Should I pay interest during the course?
If you can, it lowers the balance you start repaying and the total interest.
Please note: This calculator gives estimates for planning. It is not financial advice, and lenders’ actual terms, fees and rounding may differ.