moneyWhat this student loan calculator does
It estimates when your student loans will be paid off and how much interest you will pay, then shows what an extra monthly payment changes. Enter one consolidated loan or each federal and private loan separately. When one loan is paid off, its payment rolls into the next, so your total monthly budget stays the same until everything is cleared.
How to use it
Find each loan’s current balance, interest rate and required monthly payment on your servicer’s website or statement. Add an extra amount you can pay each month, then choose whether it goes to the highest-rate loan first (usually the least interest) or the smallest balance first (quicker wins).
Ask your servicer to apply extra payments to principal on the loan you choose rather than advancing your next due date.
Assumptions
- Fixed interest rates with interest calculated monthly and rounded to the cent. Federal loans actually accrue interest daily, so results are close estimates.
- Required payments stay the same. Income-driven repayment, deferment, forbearance, capitalized interest, forgiveness programs and refinancing are not modeled.
- The first payment is next month. Payoff dates are shown to the month.
Worked example
Three loans — $5,500 at 4.99%, $14,000 at 5.5% and $12,000 at 8.25% — with required payments of $365 a month are paid off in 9 yr 9 mo with $11,035 of interest. Adding $150 a month, aimed at the 8.25% loan first, finishes in 6 yr 2 mo and saves $4,736 in interest.
Frequently asked questions
Should I pay off the highest-rate student loan first?
Directing extra money to the highest rate first (the avalanche method) generally minimizes total interest. Paying the smallest balance first can feel more motivating. Switch between them here to compare the difference for your loans.
Is it better to pay off student loans early or invest?
It depends on your interest rates, emergency savings, employer retirement match and eligibility for forgiveness programs. This calculator shows the guaranteed interest saved by prepaying; it does not compare investment returns.
What if I’m on an income-driven repayment plan or pursuing forgiveness?
Extra payments may not help if a balance is likely to be forgiven, for example under Public Service Loan Forgiveness. Check with your servicer or studentaid.gov before prepaying those loans.
Does this work for a single student loan?
Yes. Remove the example loans until one remains and enter its balance, rate and payment. The results show the payoff date and interest saved for that loan alone.