Reviewed 3 October 2026 by Dhruv Patil. Free planning tool. Results are estimates based on your inputs; no login is needed.
How to use the loan EMI and prepayment calculator
- Choose a loan profile, then replace the example rate and amount with your own statement figures.
- Enter the remaining repayment tenure. The profile defaults are examples, not current lender quotes.
- Check the EMI, total interest and repayment schedule.
- Switch on extra monthly payments to compare a shorter repayment period while keeping the base EMI unchanged.
- Confirm prepayment allocation, fees and any rate-reset effects with your lender before paying extra.
Reducing-balance EMI formula
EMI = P × r × (1 + r)^n / [(1 + r)^n − 1]. P is the principal balance, r is the annual percentage rate divided by 1,200, and n is the tenure in months. At zero interest, EMI is P divided by n. Monthly interest is charged on the outstanding balance; the rest of the payment reduces principal.
A flat-rate quotation uses a different basis. Compare the lender's repayment schedule and annual percentage rate rather than comparing the advertised percentage alone. This tool uses reducing-balance interest and a constant rate throughout the model.
₹5 lakh loan at 10% for five years: EMI and extra payments
| Scenario | Monthly payment | Repayment months | Total interest |
|---|---|---|---|
| Scheduled EMI | About ₹10,624 | 60 | About ₹1,37,411 |
| EMI plus ₹2,000 | About ₹12,624 | 49 | About ₹1,09,350 |
The final payment is smaller. In this example extra payments save about ₹28,062 in interest and finish 11 months earlier. A floating-rate reset, fees, arrears or different payment dates can change the result.
Education-loan moratorium: which amount should you enter?
This tool does not automatically simulate staggered disbursements or moratorium interest. Enter the lender-confirmed balance when repayment begins. SBI's education-loan FAQ explains that outstanding moratorium interest is added at commencement of repayment. Other loans may have different terms or subsidy arrangements; check the sanction letter and statement.
For a simple illustrative calculation, ₹5 lakh fully disbursed for one year at 10% simple interest produces ₹50,000 interest if none is serviced and no support applies. That is not the result for a loan paid out in several instalments. Ask for the actual capitalised balance instead of using the originally sanctioned limit.
Loan affordability is an estimate, not an approval
Affordability mode uses the selected income and obligation ratio to calculate an illustrative payment budget. Lenders consider their own policy, credit history, income stability, existing obligations and security requirements. No universal 50% ratio guarantees approval or removes the need for a co-borrower. Your comfortable payment may be lower than a lender's maximum.
Prepayment charges and tax benefits
SBI's education-loan FAQ says it does not charge a prepayment penalty for the loans described there. That is not a statement about every lender or loan. Ask your lender to confirm the current prepayment charges, applicable regulatory protection, any minimum payment and the way extra money is allocated. Fixed-rate and older loan terms may differ.
The tool excludes tax benefits, processing costs, insurance, arrears and lender-specific charges. Any education-loan tax benefit depends on eligibility and applicable tax law; it is not an automatic refund or a reason to keep unnecessary debt.
Frequently asked questions
Does this calculator give my exact bank EMI?
It gives an estimate under the displayed assumptions. Use the lender's current schedule for the contractual EMI.
Will paying extra lower my EMI or tenure?
This model keeps the EMI constant and shortens tenure. The lender may offer another treatment; confirm your choice in writing.
Can I compare education, personal, bike and home loans?
Yes, with the correct reducing-balance rate and repayment balance. The selected profile does not establish product eligibility or a current offer.
Should I invest instead of prepaying?
Compare liquidity, loan costs, tax eligibility, investment uncertainty and your income stability. Read our education-loan repayment versus SIP guide.
Next: education-loan prepayment guide, SIP calculator and SWP calculator.