Student Loan Payment Calculator
Print| Total Cumulative Interest Paid | $0.00 |
The Student Loan Payment Calculator helps college students, graduates, and parents calculate monthly loan payments, total interest charges, and loan amortization schedules for federal Direct Subsidized, Unsubsidized, Grad PLUS, Parent PLUS, and private student loans.
The Student Loan Payment Formula
Monthly principal and interest payments for standard 10-year amortized student loans are calculated using the following payment equation:
Monthly Payment (PMT) = Principal × [ r(1 + r)^n ] / [ (1 + r)^n - 1 ]
Where:
- Principal: Total student loan balance at graduation (including any unsubsidized interest capitalized during school).
- r (Monthly Rate): Fixed interest APR divided by 12 months.
- n (Total Term in Months): Standard 10-year repayment timeline (120 months) or extended repayment terms (up to 300 months).
Student Loan Payment Benchmarks by Interest Rate
Compare estimated monthly payments and total interest costs on a $35,000 student loan balance across standard interest rate benchmarks:
| Loan Category / APR | 10-Year Term (120 mos) | 15-Year Term (180 mos) | 20-Year Term (240 mos) |
|---|---|---|---|
| Federal Undergrad (5.50% APR) | $379.73 / mo ($10,568 int) | $286.08 / mo ($16,494 int) | $240.75 / mo ($22,780 int) |
| Federal Grad (7.05% APR) | $407.03 / mo ($13,844 int) | $315.65 / mo ($21,817 int) | $272.50 / mo ($30,400 int) |
| Parent PLUS (8.05% APR) | $425.26 / mo ($16,031 int) | $335.53 / mo ($25,395 int) | $293.71 / mo ($35,490 int) |
| Private Fixed (10.00% APR) | $462.53 / mo ($20,504 int) | $376.12 / mo ($32,702 int) | $337.76 / mo ($46,062 int) |
Step-by-Step Student Loan Payment Calculation Example
Here is an example calculating monthly payments for a graduate with $40,000 in federal Direct Unsubsidized loans at 6.50% APR (10-year standard term):
- Identify Loan Parameters: Principal = $40,000, Interest Rate = 6.50% APR, Term = 120 months.
- Calculate Monthly Rate:
6.50% / 12 = 0.5417% (0.005417 per month). - Compute Monthly Payment: Applying standard loan amortization yields $454.21 per month.
- Calculate Total Repayment Amount:
$454.21 × 120 = $54,505.20 total paid. - Determine Total Interest Cost:
$54,505.20 - $40,000 = $14,505.20 total interest.
Frequently Asked Questions
What is the standard repayment plan for federal student loans?
The standard repayment plan is a 10-year (120 month) fixed-payment schedule that ensures your student loan is fully paid off with the lowest lifetime interest costs compared to income-driven plans.
What is capitalized interest on student loans?
Capitalized interest occurs when unpaid accrued interest (such as interest accumulated during deferment or forbearance) is added to your main loan principal balance, increasing your overall interest charges.
Can student loan interest be deducted on tax returns?
Yes. Eligible taxpayers can deduct up to $2,500 in student loan interest paid each year as an above-the-line deduction, subject to income threshold limits (MAGI).
How does refinancing private student loans affect monthly payments?
Refinancing private student loans at a lower interest rate reduces your monthly payment amount and total lifetime interest costs, provided you maintain a strong credit profile and income history.