Student Loan Calculator

The calculator uses the standard amortization formula: payment = principal x (r x (1 + r)^n) / ((1 + r)^n - 1), where r is the monthly interest rate and n is the number of months in your term. The result is a fixed dollar amount that covers interest first each month and retires the full balance by the last payment. If your rate is 0%, the payment is simply the balance divided by the number of months.

Eligible subsidized federal loans generally receive an interest subsidy during qualifying in-school, grace, and deferment periods, while interest accrues on unsubsidized loans. Accrued interest does not automatically capitalize at every grace-period transition under current federal rules, and private contracts differ. Check the loan's current interest and capitalization terms rather than assuming the calculator's treatment applies.

The calculator accrues simple interest during the entered grace period and adds it to the modeled repayment balance for an unsubsidized loan. That is a conservative software assumption, not a statement that every federal or private loan capitalizes interest at grace-period end. Use the servicer's current principal, accrued-interest balance, and contract terms for an actual payoff estimate.

Yes, if your budget allows. Federal and most private student loans carry no prepayment penalty, so every extra dollar goes directly to principal and cuts the interest that accrues the following month. The calculator shows you exactly how many months you save and how much interest you avoid. Adding even $50 to $100 per month to a 10-year loan can trim years off repayment and save thousands of dollars.

Federal student loans default to a 10-year Standard Repayment Plan (120 monthly payments). Extended plans can stretch to 25 years, and income-driven plans adjust your payment based on earnings. Longer terms lower your monthly payment but substantially increase total interest, so the calculator lets you compare terms side by side to see the real cost difference.