💰 Financial
Student Loan Calculator
Calculate your student loan payments and see how extra payments can help you clear your educational debt faster and save on interest.
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Formula
M = P × [r(1+r)^n] / [(1+r)^n - 1]M- Monthly payment
P- Total student loan balance
r- Monthly interest rate
n- Total number of months in repayment term
Example
Standard 10-Year Repayment Plan
Calculating the payment for $40,000 in student loans at an average interest rate of 5.8%.
- Identify loan parameters: P = $40,000, Annual Rate = 5.8%, Term = 10 years.
- Convert to monthly values: r = 0.058 / 12 = 0.00483, n = 120 months.
- Apply the standard amortization formula.
- Result: The monthly payment is $440.09. Over 10 years, you will pay $12,811 in interest.
Frequently Asked Questions
Federal student loans typically default to a 10-year standard repayment plan, though extended and income-driven plans can stretch the term to 20 or 25 years.
Yes, unpaid interest can capitalize (be added to your principal balance) after periods of deferment or forbearance, meaning you will pay interest on the interest.
Yes, federal loans can be combined through a Direct Consolidation Loan, while private and federal loans can be refinanced through a private lender, often to secure a lower interest rate.