About the Study Loan Tax Calculator
What is the Study Loan Tax Calculator?
Interest paid on an education loan is fully deductible under Section 80E in the old regime – there is no upper limit – for up to eight years from the year repayment starts.
This calculator builds the repayment schedule, applies your tax slab to each year's interest and shows the effective interest rate after tax.
How to use the Study Loan Tax Calculator
- Education Loan Outstanding When Repayment Starts (₹) (sample: 10,00,000)
- Interest Rate (% per year) (sample: 10)
- Repayment Tenure (years) (sample: 7)
- Your Tax Slab (old regime) (sample: 30%)
- Press Calculate 80E Tax Saving (results also refresh as you type). The result card shows the Total Tax Saved (Section 80E), along with Monthly EMI, Interest deductible (first 8 years), Effective interest rate after tax and Rules.
Formula used
Tax saved = Interest paid in the year × Slab rate × 1.04
- Effective rate = loan rate × (1 − slab rate × 1.04)
The loan must be from a bank or approved institution for higher studies of yourself, spouse, children or a student you are guardian of.
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 Outstanding When Repayment Starts (₹) | 10,00,000 |
| Interest Rate (% per year) | 10 |
| Repayment Tenure (years) | 7 |
| Your Tax Slab (old regime) | 30% |
| Result | Value |
|---|---|
| Total Tax Saved (Section 80E) | ₹1,23,084 |
| Monthly EMI | ₹16,601 |
| Interest deductible (first 8 years) | ₹3,94,499 |
| Effective interest rate after tax | 6.88% |
| Rules | Only interest is deductible, with no upper limit, for 8 years from the year repayment starts – old regime only |
Tips for using the Study Loan Tax Calculator
- Principal repayment is not deductible under 80E.
- The deduction is not available in the new tax regime.