Tax calculator

Moving abroad for your studies comes with exciting opportunities, new experiences, and important financial decisions. Alongside tuition fees and living costs, understanding how taxes may affect your finances can help you plan more confidently. That’s where the Prodigy Finance tax estimate calculator can help.

Whether you’re preparing for your studies, planning your post-graduation finances, or estimating deductions and take-home income, this calculator gives you a simple way to explore potential tax outcomes based on your inputs.

Why using a tax calculator matters

Taxes can affect your monthly budget more than you expect, especially when studying or working abroad. A tax calculator helps you estimate how much income you may keep after taxes and how different financial decisions could impact your overall budget.

Using a tax calculator can help you:

• Estimate your potential tax obligations

• Understand possible deductions or savings

• Plan your monthly budget more effectively

• Prepare for internships or graduate jobs abroad

• Explore different salary and income scenarios

• Build confidence before making financial decisions

Instead of relying on rough estimates, you can get a clearer picture of your finances before taking your next step.

Understand how Section 80E may apply to your education loan

Section 80E of the Income Tax Act, 1961 allows eligible individuals to claim a deduction on interest paid towards a qualifying education loan for higher education. The deduction applies to the interest portion of the loan, not the principal amount. 

This calculator helps Indian students estimate:

• The interest amount that may be eligible for deduction

• The estimated annual tax saving

• The effective interest cost after the estimated tax benefit

• How the estimate changes based on repayment year and tax slab

Built for Indian students studying in the USA

Many Indian students use education loans to fund a master’s degree in the USA. When you start repaying your loan, the interest you pay may be relevant for your Indian tax planning.

This tool gives you a simple way to understand the potential Section 80E benefit before speaking to a qualified tax adviser.

How the calculator works

Add your annual interest paid

• Enter the education loan interest paid during the relevant financial year.

Select your repayment year

• Section 80E deductions may be available from the initial assessment year and seven assessment years after that, or until the interest is paid in full, whichever comes first. 

Choose the old tax regime

• Section 80E is generally associated with deductions available under the old tax regime. Choose the old regime when estimating this benefit.

Pick your tax slab

• Select the tax slab that applies to you, then review your estimated tax saving.

What your estimate shows

Estimated annual tax saving

• An indicative amount based on your interest paid and selected tax slab.

Eligible deduction

• The interest amount entered into the calculator that may be considered for Section 80E, subject to eligibility.

Effective interest cost

• An estimated view of your interest cost after the potential tax saving.

Note: Your final tax position may be different. It depends on your income, tax regime, repayment details, loan eligibility and applicable Indian tax laws.

Why use this calculator?

Plan with more clarity

• Get a quick estimate before tax season, repayment planning or a conversation with your adviser.

Understand the interest benefit

• See why the interest portion of your education loan matters under Section 80E.

Compare repayment scenarios

• Adjust the interest amount, repayment year and tax slab to see how your estimate changes.

Prepare better questions

• Use the estimate to ask your tax adviser more specific questions about your education loan.

Important information

This calculator is provided for informational and estimation purposes only. Prodigy Finance does not provide tax advice, legal advice or financial advice.

Section 80E eligibility depends on Indian tax laws, your personal tax position, loan details, repayment status, the tax regime selected and other relevant conditions. Please consult a qualified tax adviser before claiming any deduction or making tax decisions.

Using this calculator does not guarantee tax savings, loan approval or any specific financial outcome. Prodigy Finance loans are subject to eligibility, application review and approval.

*The purpose of this calculator is to provide Indian students with a general estimate of potential tax savings on education loan interest under Section 80E of the Income Tax Act, 1961. It should not be regarded as tax, legal, financial or accounting advice, or as a substitute for guidance from a qualified tax adviser or the relevant tax authorities. While we’ve taken care to build the calculator using general Section 80E principles, Prodigy Finance Limited does not accept liability for any inaccuracies, omissions, outdated details or differences between the estimate shown and your actual tax position. Eligibility for any deduction depends on your personal circumstances, tax residency, income, loan details, repayment status, tax regime and applicable Indian tax laws. We strongly encourage all students and readers to consult a qualified tax adviser and refer to official Income Tax Department guidance before claiming any deduction or making tax-related decisions. Prodigy Finance Limited is not authorised to provide tax advice and cannot offer personalised tax guidance or assistance.