About the Section 80E Calculator
What is the Section 80E Calculator?
Interest paid on a loan taken for higher education — for yourself, your spouse, your children or a student for whom you are the legal guardian — is fully deductible under Section 80E. There is no upper limit on the amount.
The deduction is available for the year you start repaying interest and the next seven years, a maximum of eight years. Enter the interest paid this year and the repayment year to see your deduction and tax saving.
How to use the Section 80E Calculator
- Education Loan Interest Paid This Year (₹) (sample: 1,20,000)
- Year of Repayment (1 = first year you pay interest) (sample: 3)
- Your Income Tax Slab Rate (sample: 30%)
- Press Calculate 80E Deduction (results also refresh as you type). The result card shows the Section 80E Deduction, along with Tax saved (old regime, incl. cess), Years of deduction left, Upper limit and Effective interest cost after tax saving.
Formula used
80E deduction = Interest paid in the year (years 1–8 of repayment)
- Tax saved = deduction × slab rate × 1.04
Only interest is deductible, not principal repayment. The loan must be from a bank, financial institution or approved charitable institution.
Worked example
These are the sample values already filled in the calculator above, and the result it returns for them:
| Input | Sample value |
|---|---|
| Education Loan Interest Paid This Year (₹) | 1,20,000 |
| Year of Repayment (1 = first year you pay interest) | 3 |
| Your Income Tax Slab Rate | 30% |
| Result | Value |
|---|---|
| Section 80E Deduction | ₹1,20,000 |
| Tax saved (old regime, incl. cess) | ₹37,440 |
| Years of deduction left | 5 |
| Upper limit | No limit – the full interest is deductible |
| Effective interest cost after tax saving | ₹82,560 |
Tips for using the Section 80E Calculator
- Loans from relatives or employers do not qualify.
- Courses abroad and vocational courses after Class 12 are both covered.
- Request an interest certificate from your lender every year.