How student loan payments are worked out
A fixed-rate student loan on a standard plan has the same payment every month, set so the loan is paid off at the end of the term. Early payments go mostly to interest; later ones go mostly to the balance. The standard plan for federal loans is 10 years. Longer terms lower the payment but add interest.
What extra payments do
Anything you pay beyond the required amount lowers the balance directly, so every later month charges interest on less. Even a small extra payment each month can take years off a loan. In the US, neither federal nor private student loans can charge a penalty for paying early.
What this calculator doesn’t include
Income-driven repayment plans, forgiveness programs, deferment and interest capitalization aren’t modeled here. Check with your loan servicer or studentaid.gov for those.
Questions
I have several student loans. What do I enter?
If their rates are close, add the balances together and use a rate in between. To compare loans at different rates, use the debt payoff calculator, which takes each loan separately.
What rate should I use?
Your loan’s interest rate from your servicer. Federal rates are fixed for the life of each loan. If a private loan has a variable rate, the result is an estimate.
Does this work for income-driven plans?
No. Payments on those plans change with your income, so this calculator shows standard, fixed payments only.
Estimates only, using monthly compounding at your APR divided by 12. Your lender’s numbers may differ with daily interest, fees or rate changes. This calculator isn’t financial advice.