Student Loan Calculator

Student loans are usually amortised like any other instalment loan, which means the same rule applies: early payments are mostly interest and the balance falls slowly at first. The standard repayment plan spreads the loan over ten years with a fixed payment, and for many borrowers the most effective single decision is simply to pay a little extra from the start.

The reason extra payments are so powerful here is compounding in reverse. Interest accrues on whatever balance remains, so every dollar of principal you remove stops generating future interest. On a thirty thousand dollar loan at six and a half per cent over ten years, adding a hundred dollars a month typically shortens the term by a year or two and saves a meaningful four-figure sum. The calculator above shows your own figures, since the benefit scales with the balance and the rate.

There are a few factors unique to student loans worth knowing. Federal loans often come with income-driven repayment plans, which cap payments at a percentage of discretionary income and forgive the remainder after a set period — commonly twenty or twenty-five years, and sometimes ten for borrowers in public service. Whether to pay aggressively or pay the minimum and pursue forgiveness is a genuine strategic question, and it depends on your income trajectory, whether you qualify for public service forgiveness, and how much of the balance would actually be forgiven. Paying extra on a loan that is headed for forgiveness can be a waste of money.

Private loans have no such programmes, so aggressive repayment is generally the better approach there. If you hold several loans, consider which to attack first: paying the highest interest rate first saves the most money, while paying the smallest balance first produces quicker psychological wins. Many borrowers find a mixed approach works best — clear a small loan early for momentum, then target the highest rate.

Refinancing can lower your rate if your credit has improved since you borrowed, but refinancing federal loans into a private one permanently gives up income-driven repayment and forgiveness options. Check any lender's terms on that trade-off before proceeding. This calculator is a planning tool, and your loan servicer's statements are the authoritative record.

This calculator returns estimates for general information only. It is not financial, investment, tax or legal advice, and it cannot replace guidance from a qualified professional who knows your circumstances. Figures such as loan payments, investment growth and retirement projections are simplified models based on the inputs and assumptions you provide, not guarantees of future results.