Student Loan Payment Calculator
Calculate monthly student loan payments and compare 10-year vs 20-year repayment terms.
Choosing Your Repayment Plan
The standard 10-year plan minimizes total interest paid and builds net worth fastest. Income-driven plans (SAVE, IBR, PAYE) lower monthly payments based on discretionary income but extend repayment to 20–25 years, dramatically increasing total interest. Choose IDR only if your debt-to-income ratio makes standard payments unmanageable.
Interest Capitalization
When student loan interest is capitalized, it is added to principal and then accrues further interest — interest on interest. This commonly happens when entering repayment after a grace period, switching repayment plans, or leaving deferment/forbearance. Avoid capitalization events when possible, or make interest payments during in-school periods.
Extra Payments on Student Loans
Federal loans allow extra principal payments with no penalty. Even $100/month extra on a $40,000 balance at 6.5% saves over $3,500 in interest and pays off the loan about 2 years early. Specify "apply to principal" when making extra payments, especially on federal loans with multiple servicers.