Education loan calculator
ET Online | Updated : May 07, 2018, 03.32 PM IST
The education loan calculator will help you find out the equated monthly instalment (EMI) amount you need to pay every month. On a given education loan amount and for a specific duration, the calculator will let you know how much EMI will be required to be paid.
How to use it
The EMI that you need to pay will depend on the loan amount, interest rate and the tenure of the loan. Therefore, to calculate the EMI, you need to input amount of loan and the tenure according to your requirement.
Interest rates may vary across lenders as different lenders may offer loans at different rates. For the interest rate, input the rate at which your lender is providing you the loan.
Use the slider to put in different education loan amount and tenure to arrive at the EMI at which you are comfortable with.
What it shows
The results will show the EMI amount that you need to pay every month on the education loan amount and the tenure set by you.
Further, an 'amortisation schedule' that shows the break-up of the EMI in terms of principal repaid and interest paid on a monthly basis will be shown. The schedule helps you to understand how much education loan has already been repaid and the amount of outstanding loan amount on any given day.
From the amortisation schedule, one can also calculate the total interest outgo over the period of the loan. This will tell you how much the loan will actually cost you.
How the result arrived at
The formula used for arriving at the EMI is:
EMI = [P x R x (1+R) ^n] / [(1+R)^ n-1]
Here, P= Principal loan amount, R= Rate of interest, n= Number of monthly instalments.