FinanceCalcs
Student Loan Calculator
Calculate your monthly student loan payment, total interest paid, and full amortization schedule — then see exactly how much extra payments save you in interest and time.
Works for federal and private student loans — compare standard repayment against extra payment scenarios side by side.
Student Loan Calculator
Total Interest: $0
- Balance (Standard)
"An investment in knowledge pays the best interest."
— Benjamin Franklin
Federal student loan repayment plans
Standard Repayment (10 Years)
Fixed equal payments over 10 years. Pays the least total interest of any federal repayment plan — the default option for most federal borrowers and the plan to benchmark others against.
Extended Repayment (Up to 25 Years)
Lower monthly payments stretched over up to 25 years. Easier on monthly cash flow but significantly more interest paid over the life of the loan — often tens of thousands of dollars more.
Income-Driven Repayment (IDR)
Payments based on income and family size — typically 5–20% of discretionary income depending on the plan. Four plans are available: SAVE, PAYE, IBR, and ICR. Any remaining balance is forgiven after 10–25 years depending on the plan, though forgiven amounts may be taxable.
Public Service Loan Forgiveness (PSLF)
Remaining balance forgiven tax-free after 120 qualifying payments (10 years) while working full-time for a qualifying government or nonprofit employer on an IDR plan. Requires careful documentation and employer certification.
chevron_right Official repayment plan information at studentaid.gov
lightbulb Example Student Loan Scenario
Suppose you graduate with $38,000 in federal loans at a 6.5% interest rate on the standard 10-year repayment plan. Your monthly payment would be approximately $431, and you would pay roughly $13,700 in total interest over the life of the loan.
Extending to a 25-year term drops your monthly payment to about $255 — a savings of $176/month — but total interest balloons to roughly $38,500, nearly equaling your original loan balance.
Adding just $100/month extra to the standard plan pays off the loan in about 7.5 years instead of 10, saving approximately $3,800 in interest and cutting 2.5 years off the payoff timeline.
Many borrowers use this calculator at graduation to compare repayment options and see the long-term cost of lower monthly payments before choosing a plan.
Student Loan Calculator FAQs
Should I choose income-driven repayment or standard repayment?
Standard repayment minimizes total interest paid and gets you debt-free in 10 years. Income-driven repayment is better suited for borrowers whose debt significantly exceeds their income, who work in public service and plan to pursue PSLF, or who need lower monthly payments to maintain financial stability early in their career. If you can afford the standard payment, it is almost always the lower-cost option over time.
How much does paying extra each month save?
Even modest extra payments have a meaningful impact because they reduce the principal faster, which lowers the interest charged in every subsequent month. On a $35,000 loan at 6.5%, adding $100/month to a standard 10-year plan saves roughly $3,000–$4,000 in interest and cuts about 2 years off the repayment period. Use the calculator above to see the exact savings for your balance and rate.
What is capitalized interest and why does it matter?
Capitalized interest is unpaid interest that gets added to your loan principal. Once capitalized, you pay interest on the original interest — a compounding effect that can meaningfully increase your balance before repayment even begins. Unsubsidized federal loans accrue interest from the day they are disbursed; if you do not pay that interest during school, it capitalizes at repayment — increasing both your balance and your monthly payment.
Is it better to pay off student loans or invest?
It depends primarily on your interest rate. If your loans carry rates above 6–7%, paying them down aggressively typically produces a better guaranteed return than investing, especially on an after-tax basis. If your rates are below 5%, investing in a diversified portfolio with an expected return of 7–8% may come out ahead mathematically. Many people split the difference — making standard or slightly accelerated payments while also contributing to employer-matched retirement accounts.
Student loan terminology
Subsidized vs. Unsubsidized Loans
Subsidized loans do not accrue interest while you are enrolled at least half-time — the government covers that interest. Unsubsidized loans begin accruing interest immediately upon disbursement, and any unpaid interest capitalizes when repayment begins.
Capitalized Interest
Unpaid interest added to your loan principal. Once capitalized, you pay interest on the original interest — a compounding effect that can significantly increase your total balance and the amount you ultimately repay.
Grace Period
Most federal loans provide a 6-month grace period after graduation or dropping below half-time enrollment before repayment begins. Unsubsidized loans continue accruing interest during this period — paying it before capitalization saves money.
Weighted Average Interest Rate
When you hold multiple loans at different rates, the weighted average rate reflects the blended cost across all balances. Multiply each balance by its rate, sum the results, and divide by total balance. Useful for consolidation decisions.
Loan Servicer
The company that handles billing and customer service for your federal student loans. Servicers include MOHELA, Aidvantage, Nelnet, and ECSI. Your servicer is assigned by the Department of Education — you do not choose them.
Disclaimer: All calculators on this site are provided for informational and educational purposes only. Results are estimates based on the inputs you provide and mathematical formulas — they do not account for taxes, fees, inflation, risk, or other real-world factors that may affect financial outcomes. Past performance does not guarantee future results. Nothing on this site constitutes financial, investment, legal, or tax advice. Always consult a qualified professional before making financial decisions.
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