Student Loan Calculator
Estimate student loan payments.
Input
Result
What is a Student Loan Calculator?
A Student Loan Calculator estimates your monthly student loan payment based on the total amount borrowed, interest rate, and repayment term. It works for both federal and private student loans, helping you plan your budget after graduation.
How to calculate student loan payment manually (the formula)
The standard amortisation formula is: M = P [ r(1+r)n ] / [ (1+r)n – 1 ] where M is the monthly payment, P is the principal (total loan amount), r is the monthly interest rate (annual rate ÷ 12), and n is the total number of monthly payments (term in years × 12).
Example calculation
For $30,000 in student loans at a 5.5% interest rate over a 10-year term: the monthly rate is 0.4583% (5.5% ÷ 12). Over 120 payments, the monthly payment is about $326. The total interest paid over the full term is approximately $9,060.
Common mistakes
- Ignoring interest capitalisation — Unpaid interest on unsubsidised loans capitalises (adds to the principal), which increases the total cost over time.
- Choosing the longest term by default — Extended terms lower the monthly payment but significantly increase total interest. Pay more if you can afford it.
- Not understanding loan type differences — Federal loans offer forgiveness programs and income-driven plans. Private loans generally do not, and they often have higher rates.
- Forgetting about grace periods — Most student loans have a 6-month grace period after graduation before payments begin. Use this time to plan your repayment strategy.
- Missing out on employer repayment assistance — Some employers offer student loan repayment as a benefit. Check if your company provides this tax-free contribution.
Frequently asked questions
How does a student loan calculator work?
A student loan calculator estimates your monthly payment based on the total loan amount, interest rate, and repayment term. It uses the standard amortisation formula to calculate equal monthly payments over the selected term.
What is the difference between subsidised and unsubsidised loans?
The government pays the interest on subsidised loans while you are in school. Unsubsidised loans accrue interest from the day they are disbursed, which capitalises (adds to the principal) if unpaid.
Should I choose a standard or income-driven repayment plan?
Standard plans have fixed payments over 10 years and minimise total interest. Income-driven plans base payments on your income and can extend the term, potentially leading to loan forgiveness after 20–25 years.
Can I pay off student loans early?
Yes, and there are typically no prepayment penalties on federal or private student loans. Paying extra reduces the principal faster and saves on total interest.
Is this calculator free to use?
Yes, completely free with no sign-up required. You can use it as many times as you like.