Student Loan Calculator

This student loan calculator helps you estimate your monthly payments, total interest, and compare different repayment plans. Enter your loan details to see how different repayment strategies affect your payments and total cost.

Extra payments can significantly reduce your total interest and payoff time

How the Student Loan Calculator Works

The student loan calculator uses different formulas depending on the repayment plan you select:

Standard Repayment Plan

The standard repayment plan uses a fixed monthly payment formula:

Monthly Payment = P × [r(1+r)^n / ((1+r)^n - 1)]

Where:

  • P = Principal (loan amount)
  • r = Monthly interest rate (annual rate divided by 12)
  • n = Number of payments (loan term in years × 12)

Graduated Repayment Plan

The graduated repayment plan starts with lower payments that increase every two years:

  • Initial payments are approximately 50% of the standard payment
  • Payments increase by approximately 15-20% every two years
  • The loan must be paid off within the same term as the standard plan

Extended Repayment Plan

The extended repayment plan uses the same formula as the standard plan but with a longer term (up to 25 years):

Monthly Payment = P × [r(1+r)^n / ((1+r)^n - 1)]

Where n = up to 300 monthly payments (25 years)

Income-Based Repayment (IBR)

Income-based repayment calculates payments based on your discretionary income:

Monthly Payment = (Annual Income - 150% of Poverty Line) × 10% / 12

The poverty line varies based on family size and is updated annually.

Additional Payments

When you make additional payments, they are applied directly to the principal, which:

  • Reduces the total interest paid over the life of the loan
  • Shortens the time to pay off the loan
  • Does not change your required monthly payment