The calculator
Every college page on this site ends its ROI section with the same question: can the salary this degree realistically produces service the loan it requires? This is that maths, interactive. Set the loan to the college's real total cost (fees + hostel + living, minus what your family pays upfront), the rate your bank quotes, and the tenure you are considering.
Standard reducing-balance arithmetic on the numbers you enter — your actual rate and moratorium terms depend on the lender. The 40% ceiling is this site's own ROI rule: an EMI above 40% of take-home leaves nothing for rent, food or savings.
How the maths works
The calculator uses the standard reducing-balance EMI formula every Indian bank uses: EMI = P × r × (1+r)ⁿ / ((1+r)ⁿ − 1), where P is the principal, r the monthly interest rate, and n the number of months. Two numbers matter more than the EMI itself:
- Total interest — the true price of the loan. Stretching the tenure shrinks the EMI but grows this number, often by lakhs.
- Take-home needed — our 40% rule. If the EMI exceeds 40% of monthly in-hand salary, rent, food and savings get squeezed and one income shock becomes a default. Judge every offer against in-hand pay, never CTC.
A worked example (illustrative, not a college's figure)
Suppose a four-year private engineering degree needs a ₹10,00,000 loan at 9.5% for 7 years. The EMI is about ₹16,300 a month; total interest ≈ ₹3,73,000, so the ₹10 lakh borrowed costs ≈ ₹13,73,000 to repay. To keep that EMI within 40% of take-home, the graduate needs roughly ₹41,000 a month in hand. Now check the college's median — not average — package against that number. That single comparison is most of college ROI.
Where to find the real numbers
Fees for private, non-deemed Maharashtra colleges are approved college-by-college by the Fees Regulating Authority; deemed universities publish their own fee notifications. Our college pages carry the year-labelled figures we have verified — start from the hubs: Engineering admission guidance, MBA admission guidance, MBBS admission guidance — or jump straight to a college like PICT Pune, COEP Pune or KMC Manipal.
Frequently Asked Questions
What is a moratorium period on an education loan?
The moratorium is the window — usually the course duration plus a few months — during which the bank does not demand full EMIs. Interest still accrues through it, and many lenders expect simple-interest servicing during study. The exact terms differ by lender, so confirm before signing.
Why does the calculator show the take-home salary needed?
Our ROI rule: the EMI should not exceed 40% of monthly take-home pay. Above that, rent, food and savings get squeezed and a single income shock becomes a default risk. The calculator divides your EMI by 0.4 to show the take-home that repayment realistically requires.
Should I use the CTC or the in-hand salary to judge repayment?
In-hand, always. A CTC includes employer PF, gratuity, one-time joining bonuses and variable pay you may never fully receive. Your bank collects the EMI from your bank account, which only ever sees the in-hand amount.
Does a longer tenure make the loan cheaper?
A longer tenure lowers the monthly EMI but raises the total interest paid — often dramatically. Use the "Total interest" figure in the calculator to see the real price of stretching the tenure before you choose comfort over cost.