About the Student Loan Calculator
A student loan calculator estimates monthly payments and total interest on an education loan. Student debt behaves differently from other borrowing — repayment options, forgiveness programmes, and interest subsidies all depend on whether the loan is federal or private.
The formula
M = P · [ r(1 + r)ⁿ ] / [ (1 + r)ⁿ − 1 ]The standard federal repayment term is 10 years. Income-driven plans extend to 20 or 25 years with payments capped as a percentage of discretionary income.
How to use this calculator
- 1Enter your Student Loan Amount ($). The field starts at
30000, which you can overwrite. - 2Enter your Interest Rate (%). The field starts at
4.5, which you can overwrite. - 3Enter your Loan Term (Years). The field starts at
10, which you can overwrite. - 4Read the result straight away — it recalculates as you type, so there is no button to press. Use Share to copy a link that reopens the page with your exact numbers filled in.
Worked example
| Input | Value |
|---|---|
| Student Loan Amount ($) | 30000 |
| Interest Rate (%) | 4.5 |
| Loan Term (Years) | 10 |
Result
Monthly Payment: $310.92
Those are the values the page loads with, so you can reproduce this result yourself and then change one field at a time to see what drives the outcome.
Understanding your result
The federal and private distinction determines almost everything. Federal loans carry fixed rates, income-driven repayment options, deferment and forbearance rights, and potential forgiveness after 10 to 25 years depending on the programme. Private loans generally offer none of that, and refinancing federal debt privately permanently forfeits those protections.
Interest capitalisation is the mechanism that catches borrowers out. On unsubsidised loans, interest accrues during study and is added to the principal when repayment begins, so you start repaying a larger balance than you borrowed. Making interest-only payments while studying prevents this and can save thousands.
Things worth knowing
- Never refinance federal loans privately unless you are certain you will not need income-driven repayment or forgiveness.
- Subsidised federal loans do not accrue interest while you study; unsubsidised ones do.
- Public Service Loan Forgiveness can discharge remaining federal debt after 120 qualifying payments in eligible employment.
- Paying interest during study prevents capitalisation and reduces the balance you start repaying.
- Target the highest-rate loan first when paying extra, unless pursuing forgiveness.
Frequently asked questions
What is the difference between federal and private student loans?+
Federal loans offer fixed rates, income-driven repayment, deferment rights, and forgiveness programmes. Private loans are ordinary consumer debt with none of those protections, though rates can be lower for strong credit.
Should I refinance my student loans?+
Only private loans, generally. Refinancing federal loans into a private one permanently gives up income-driven repayment, forbearance rights, and any forgiveness eligibility, which is rarely worth a modest rate reduction.
What is interest capitalisation?+
Unpaid interest being added to the principal, so you then pay interest on interest. It typically happens when repayment begins after a deferment, and paying interest during study avoids it.
Can student loans be forgiven?+
Federal loans can be, through Public Service Loan Forgiveness after 120 qualifying payments in eligible employment, or after 20 to 25 years on income-driven plans. Private loans have no forgiveness route.