Student Loan Calculator
Simple Student Loan Calculator
Please provide any three values below to calculate.
Student Loan Repayment Calculator
Use the calculator below to evaluate the student loan payoff options, as well as the interest to be saved. The remaining balance, monthly payment, and interest rate can be found on the monthly student loan bill.
Pay off in 6 years and 2 months
The remaining term of the loan is 9 years and 10 months. By paying an extra $150.00 per month, the loan will be paid off in 6 years and 2 months. It is 3 years and 8 months earlier. This results in savings of $4,421.28 in interest payments.
| Remaining Term | 6 years and 2 months |
| Total Payments | $36,767.26 |
| Total Interest | $6,767.26 |
The Original Payoff Schedule
| Remaining Term | 9 years and 10 months |
| Total Payments | $41,188.54 |
| Total Interest | $11,188.54 |
Student Loan Projection Calculator
Use the calculator below to estimate the loan balance and repayment obligation after graduation. This calculator is mainly for those still in college or who haven't started. Before estimating, it may be helpful to first consult our College Cost Calculator to get a rough idea of how much college may cost.
Result
| Repayment: | $526.96/month |
| Amount Borrowed: | $40,000.00 |
| Balance After Graduation: | $44,263.99 |
| Balance After Grace Period: | $45,790.44 |
| Total Interest: | $23,234.95 |
* For some direct subsidized loans, you do not need to pay interest during school years or the grace period.
* This calculator assumes loans to be repaid each month equally right after graduation or grace period. It also does not take into account any loan fees.
In the U.S., there are several types of student loan providers: government and private. Federal and state governments provide the lion's share of student loans in the country and offer the considerable advantage of being subsidized. This means that students are not required to pay interest on their student loans while they are still considered students. Therefore, the cost of public, subsidized loans is lower than those offered by the private sector. As a matter of fact, federal student loans have some of the lowest interest rates around and do not require cosignatories, simply proof of acceptance to an educational institution. For these reasons, more than 90% of student debt today is in the form of federal loans.
Before delving into student loans, governmental or private, remember that there are other options to consider. Grants and scholarships do not require repayment as loans do, and some of these can cover the entirety of a student's education costs, preempting the need for a loan. Work-study programs exist for students who have financial needs and are able to work part-time. Students with extra disposable income can pay it towards schooling costs before taking out student loans to help decrease the size and length of their student loans, making them more affordable in the long run. Ideally, only after exploring these options should students resort to taking out some of the student loans described below.
Federal Student Loan
Direct Subsidized and Direct Unsubsidized Loans (sometimes referred to as Stafford Loans)
Direct Subsidized Loans are need-based and dependent on Expected Family Contribution (EFC) to determine the loan amount. Because they are subsidized, there are 6-month grace periods after a person completes their studies before mandatory payments of the interest on the loans begin. Direct Unsubsidized Loans, on the other hand, are not need-based and interest on the loans begins accruing immediately after approval.
Direct PLUS Loans
These are typically for graduate or professional students enrolled at least half-time at an eligible school or parents of dependent undergraduate students enrolled at least half-time. Borrowers should have favorable credit histories, and the maximum possible loan amount is the difference between the cost of attendance for attending a particular school and any other financial aid received, such as scholarships. The interest rate on Direct PLUS loans tends to be higher than Stafford loans. There is an up-front fee called the origination fee that hovers around 4% of the loan amount.
Direct Consolidation Loans
Borrowers of multiple federal student loans can choose to consolidate them into a single Direct Consolidation Loan. The main reasons for consolidating include having one simple monthly payment instead of several, lower monthly payments but longer time period on loans, and access to additional income-driven repayment plans. Before choosing to consolidate, there are some tradeoffs to consider. For example, lengthier loans will result in more paid out for interest. Furthermore, consolidation may also negate certain benefits inherent in individual loans, such as interest rate discounts, principal rebates, or loan cancellation benefits.
State Student Loan
The fifty states have a wide variety of loan offers that differ immensely from state to state, usually offered by state agencies or state-chartered non-profit organizations. No two states will offer the same student loans. The list of available student loans offered by all fifty states is extensive; students should consult their state's department of post-secondary education for details about state-specific aid that is available.
Similar to some federal student loans, certain state student loans may also contain forgiveness programs, though only if the student remains in the state after graduation. Whether student loans are forgivable or not will be dependent on what each state deems appropriate to forgive, which is usually reserved for pressing needs such as particular industries. Student loans for nursing or teaching are commonly forgiven for that reason.
Individual state filing deadlines are frequently earlier than the federal standard, so make sure timetables reflect whichever comes first. State student loans may also have additional, unique eligibility requirements. Generally, participants must be residents of the state or must be out-of-state students enrolled in a college within the particular state.
Private Student Loan
Private student loans mostly originate from banks and loan companies; as a result, applicants will be expected to go through the full underwriting process that includes checking credit histories and debt-to-income ratios. Also, almost all private student loans are not subsidized; interest payments usually must be made for the life of the loan. Interest rates are higher than subsidized student loans but still relatively low in the world of private loans.
Since the U.S. loan market is dominated by cheaper federal student loans, people that use private student loans in the U.S. are few and far between. However, private student loans can be used to help pay for education if federal programs are not an option or have been exhausted. Some students will find that federal loans cannot cover all the costs associated with college and will require some other form of funding. However, keep in mind that rates on these tend to be higher and are more likely to be variable rather than fixed. Some private schools may offer loans through school trust funds. Rates from these tend to be lower than loans from private lenders. Unlike federal student loans, these are heavily dependent on credit. Since parents tend to have better credit histories than their children, having a parent cosign can result in better rates. Also, note that private student loans are normally not forgivable.
With that said, private student loans do carry some benefits: The application process is typically less stringent, funds are available almost immediately, and interest may be tax-deductible. Also, they aren't based on financial needs like most federal loans.
Student Loan Repayment Options
It is not uncommon for new graduates to struggle to repay their student loans. Unfortunate circumstances such as flaccid job markets or recessions can exacerbate situations. For federal student loans, there are some alternative solutions that can aid in dwindling down student loan payments. Income-based repayment plans can potentially cap the amount that students repay each month based on available income if they find that their student loans become increasingly harder to pay off. These plans prolong the life of the loans, but they relieve the burden of large monthly payments. There are also graduate repayment plans that slowly ramp up monthly payments over time, presumably in conjunction with projected salaries as people progress through their careers. Extended graduated repayment plans allow borrowers to extend their loans for up to 25 years. For some income-linked plans, in the end, the remaining balance may be forgiven, especially for those in public services.
The major repayment plans for federal student loans are listed below.
| Plans | Loan Length | Monthly Payment | Qualified For | Loan Forgiveness?* |
| Standard | 10 years | Fixed | All | No |
| Graduated | 10 years | Increase every two years | All | No |
| Extended | 25 years | 10% or 15% of discretionary income | Direct and Federal Family Education Loans with $30,000 or more outstanding | No |
| Income-Based Repayment | 20 or 25 years | 10% or 15% of discretionary income, never more than under Standard plan | Partial financial hardship, or standard loan payments exceed 10% of discretionary income | Yes |
| Pay As You Earn (PAYE) | 20 years | 10% of discretionary income, never more than under Standard Plan | Direct Loan borrower after Oct. 1, 2007 with partial financial hardship | Yes |
| Revised Pay As You Earn | 20 or 25 years | 10% of discretionary income | Any Direct Loan borrower | Yes |
| Income-Contingent Repayment | 25 years | The lesser of 20% of discretionary income or the amount on a 12-year fixed payment plan | Any Direct Loan Borrower | Yes |
| Income-Sensitive Repayment | 10 years | Based on annual income | Low-income borrowers with Federal Family Education Loans | No |
* Loan forgives tax-free after 120 qualifying loan payments (10 years) for these in public services. It is not income tax-free and only forgives at the end of the loan term for others.
It is obvious through the table that many different loan repayment plans exist. However, most borrowers will end up with the standard plan when it comes time to repay the loans, which is also the default plan when no plan is chosen.
All educational loans in the U.S., including federal and private student loans, allow for penalty-free prepayment. When graduates find themselves entrenched in their careers and financially stable, they can put more money towards the reduction of existing student loans without penalty.
Student Loan Calculator: Exact Monthly Payments and Total Interest Cost
Direct Functionality
A student loan calculator computes fixed monthly payments, total repayment duration, and cumulative interest costs for federal and private education loans. The tool applies the standard amortization formula to loans with fixed annual percentage rates (APR), generating precise payment schedules for borrowers evaluating repayment strategies, refinance opportunities, or income-driven plan comparisons.
Immediate use cases include: determining affordability before borrowing, comparing subsidized versus unsubsidized federal loan costs, calculating savings from extra principal payments, and projecting Public Service Loan Forgiveness (PSLF) timelines.
Core Formula and Mathematical Method
The calculator implements the standard loan amortization equation:
M = P × [r(1+r)ⁿ] / [(1+r)ⁿ − 1]
Where:
- M = Monthly payment
- P = Principal loan balance
- r = Monthly interest rate (APR ÷ 12)
- n = Total number of payments (loan term in years × 12)
Total interest paid equals (M × n) − P. For income-driven repayment (IDR) plans, the calculator modifies this to cap payments at a percentage of discretionary income, with unpaid balances potentially forgiven after 20–25 years—though forgiveness amounts become taxable income under current law unless exempted.
Reference: Federal Student Loan Interest Rates and Terms
| Loan Type | Fixed APR (2023–2024 Academic Year) | Origination Fee | Standard Term | Grace Period |
|---|---|---|---|---|
| Direct Subsidized (Undergraduate) | 5.50% | 1.057% | 10 years | 6 months |
| Direct Unsubsidized (Undergraduate) | 5.50% | 1.057% | 10 years | 6 months |
| Direct Unsubsidized (Graduate/Professional) | 7.05% | 1.057% | 10 years | 6 months |
| Direct PLUS (Graduate/Parent) | 8.05% | 4.228% | 10 years | None (immediate repayment) |
| Perkins Loans (discontinued 2017) | 5.00% | None | 10 years | 9 months |
Source: Federal Student Aid, U.S. Department of Education. Rates set annually by Congress based on 10-year Treasury note yields plus statutory add-ons.
Practical Usage and Operational Nuance
Federal vs. Private Loan Calculation Differences
Federal loans use fixed rates set at disbursement; private loans may offer variable rates tied to SOFR (Secured Overnight Financing Rate) or Prime, typically Prime + 0.50% to Prime + 9.00%. Variable-rate calculators must incorporate rate change scenarios—use the maximum contractual cap (often 18%) for conservative estimates.
Income-Driven Repayment Complexity
IDR plans (SAVE, PAYE, REPAYE, IBR, ICR) require iterative calculations:
- Calculate discretionary income: Adjusted Gross Income − 150% (or 225% for SAVE) of federal poverty guideline for family size
- Apply percentage factor: 5%–20% of discretionary income depending on plan and loan type
- Compare to standard 10-year amortized payment; pay lesser amount
- Project forgiveness timeline and tax liability on forgiven balance
The SAVE plan (effective 2023–2024) reduces undergraduate loan payments to 5% of discretionary income (down from 10%) and eliminates unpaid interest accrual—calculators must model this non-capitalizing interest feature separately.
Capitalization Triggers
Unpaid interest capitalizes (adds to principal) at specific events: end of grace period, end of deferment/forbearance, leaving an IDR plan, or failing to recertify income annually. Calculators should flag these events as principal step-functions, recalculating subsequent payments on the inflated balance.
Worked Example: Standard vs. Extended Repayment
Borrower profile: $35,000 Direct Unsubsidized loan at 5.50% APR
| Repayment Plan | Monthly Payment | Total Payments | Total Interest | Time to Repay |
|---|---|---|---|---|
| Standard (10-year) | $380.02 | $45,602.40 | $10,602.40 | 10 years |
| Extended Fixed (25-year) | $214.94 | $64,482.00 | $29,482.00 | 25 years |
| Extended Graduated (25-year) | $165.00–$496.50 | $68,250.00 | $33,250.00 | 25 years |
| SAVE IDR ($40,000 AGI, single) | $0.00 | $0.00 principal; $17,500 forgiven | $17,500 taxable income | 20 years |
The graduated plan assumes payments increase every 2 years. The SAVE example demonstrates how IDR calculators must integrate tax planning—at 22% marginal rate, the forgiveness tax bomb equals approximately $3,850, though this is waived through 2025 under current policy and may change.
Accuracy Limitations and Data Precision
Calculators operate with these constraints:
- Rate rounding: Federal rates are published to two decimal places; daily interest accrual uses exact values (APR ÷ 365.25), creating ±$0.01–$0.05 monthly payment variance versus simplified 30-day month calculations
- Origination fee deduction: Federal loans disburse net of fees; $10,000 requested yields $9,894.30 actual principal for undergraduate unsubsidized loans. Calculators must distinguish "amount borrowed" from "amount received"
- Prepayment allocation: Extra payments may be applied to future installments rather than principal unless borrower specifies; servicer-specific algorithms vary
- Tax treatment uncertainty: IDR forgiveness taxation status expires 2025; post-2025 projections assume legislative extension or lapse
Verification and Professional Consultation Disclaimer
This calculator generates estimates based on published federal rates and standard amortization mathematics. Actual loan servicer calculations may vary due to payment processing dates, rounding conventions, and servicer-specific policies. For borrowing decisions exceeding $50,000 aggregate principal, consult a certified financial planner or student loan counselor certified by the National Foundation for Credit Counseling (NFCC). For PSLF or IDR enrollment verification, submit Employer Certification Forms annually through the Department of Education's PSLF Help Tool. Tax implications of forgiveness require consultation with a CPA or enrolled agent familiar with IRS Publication 970.