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United States • Loan
Student Loan Repayment Calculator
Calculate student loan payments under different repayment plans. See total interest and payoff timeline.
How student loan interest compounds:
- Daily Interest Accrual: Federal student loans use a simple interest formula, accruing interest daily based on the principal balance.
- Standard Repayment: The default is a 10-year term with fixed monthly payments.
- Extra Payments: Any extra payment goes directly toward the principal balance (provided you satisfy outstanding interest first), compounding your savings and shortening your payoff date.
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Managing US Student Debt
Student loans accumulate interest daily, and understanding how your payment amount affects the amortization schedule is key to paying off debt faster. Finding a repayment schedule that matches your career income will help you avoid interest accumulation.
Understanding Student Loan Repayment Math
Monthly payments for student loans are calculated using basic fixed-term amortization formulas:
- Identify Principal Balance: The original loan amount plus any capitalized interest.
- Determine Daily Interest Accrual: Annual Interest Rate / 365.25 * Principal.
- Apply Amortization Formula: Compute monthly payments required to retire the principal over standard terms (e.g. 10 years).
- Allocate Monthly Payments: Payments first cover accumulated interest, with the remainder reducing the principal balance.
Standard Repayment Programs & Term Lengths
| Parameter / Bracket | Rate / Amount |
|---|---|
| Standard Repayment Term | 10 Years (120 Payments) |
| Extended Repayment Term | Up to 25 Years |
| Direct Loan Average Rates | 4.5% to 8% based on loan type |
Frequently Asked Questions about Student Loans
Capitalized interest occurs when unpaid accrued interest is added to the principal balance, meaning you will then pay interest on that interest.
Yes, federal student loans and most private student loans do not charge prepayment penalties. Any extra payment is applied directly to the principal once current interest is paid.