Methodology

The EMI formula

The EMI is computed on a reducing balance. The monthly rate is the annual rate divided by 12. The formula is:

EMI = B x r x (1 + r)^n / ((1 + r)^n - 1)

Here B is the loan balance when repayment starts, r is the monthly interest rate, and n is the number of repayment months. Each EMI pays that month's interest first; the rest reduces the balance.

Moratorium and interest while studying

The moratorium is your course months plus your grace months. During this time you pay no EMI. Unless you choose to pay the interest every month, interest builds up as simple interest on the principal and is added to the balance when repayment starts. If you do pay interest monthly during study, only the interest for any extra waiting months in your scenario is added.

Job scenarios

• Good: pay 25 percent above expected, and a job right after the grace period.
• Normal: pay as expected, with 3 months to the first job.
• Bad: pay 30 percent below expected, with 9 months to the first job.

Interest keeps building during those extra waiting months.

Stress meter thresholds

The stress meter divides the EMI by your expected monthly take-home pay in the chosen scenario. Up to 30 percent is comfortable, 30 to 45 percent is tight, and above 45 percent is heavy. These are rules of thumb chosen by us. They are not lender eligibility rules.

A worked example

A loan of Rs 30 lakh at 10.5 percent per year, repaid over 10 years, with interest paid monthly during the course, in the good scenario. The balance at repayment start is Rs 30 lakh, the monthly rate is 0.875 percent, and there are 120 monthly payments. The computed EMI is about Rs 40,480. The total repaid is about Rs 56,45,160, of which about Rs 26,45,160 is interest including the interest paid while studying.

Known limits

Real lenders may differ from this model in several ways:

• Rate type: floating or fixed, and when the rate can change.
• Processing fees and other charges, which we do not include.
• Loan insurance, which some lenders add to the loan.
• Tax benefits under Section 80E of the Income Tax Act, which we do not model.
• Forex movement, which changes the rupee cost of expenses abroad.
• How interest is charged during the moratorium: some lenders compound it.

Country costs

Living funds are shown separately from tuition. Government visa minimums are not total costs. USA figures are university estimates for the listed programs, not government minimums.

Exchange rates as of 23 October 2026 (market rates from the sources listed): 1 EUR = Rs 106.31, 1 GBP = Rs 126.99, 1 CAD = Rs 67.81, 1 USD = Rs 95.1. Visa funds are minimums set by governments, not your total cost.

Rates are as of 23 October 2026 and will move. Your bank may use a different rate and add charges.

Rules and amounts change. Always confirm on the official government or university site before applying.