Debt
Student Loan Calculator
Built and maintained by Chandranshu Kumar · Figures from the IRS, SSA, BLS and Freddie Mac
The longer term trap
Extending a student loan to 20 or 25 years makes the monthly payment feel manageable, and sometimes that is the right call while you get on your feet. Just know the trade. Drag the term slider and watch the interest climb while the payment falls. Any month you can send a little extra, it goes straight at the balance and shortens the whole thing. If you have several loans, the same snowball and avalanche ideas from our debt guide apply here too.
Assumes a fixed rate and standard repayment. Income-driven plans work differently. Not financial advice.
How the student loan payment is worked out
The balance, the rate and the term set one level monthly payment. A $30,000 balance at 5.5% on the standard ten-year plan works out to about $326 a month.
Each payment pays the month's interest first, which is the annual rate divided by 12 times the balance owed, and the rest reduces the balance. At the start the balance is high, so interest takes the larger share. As the balance falls the interest falls with it, and more of each payment goes to principal.
Across the ten years the interest totals about $9,069, so the $30,000 borrowed costs $39,069 to repay. Stretching the term to 20 or 25 years lowers the monthly payment but raises that interest total.
Common questions
How long to pay off student loans?
The standard federal plan is 10 years. Income-driven plans stretch it out and lower the payment, but add interest, so extra payments help a lot.
Should I pay extra on student loans?
Any extra goes straight at the balance, which lowers next month's interest and shortens the loan. With several loans, the snowball and avalanche methods in our debt payoff calculator decide which one to hit first.
Are federal and private loans different?
Federal loans carry fixed rates set by law and offer income-driven plans and forgiveness options. Private loans are priced on your credit and come with fewer protections. This tool assumes a fixed rate and a standard repayment schedule.
How is the interest calculated?
Federal student loans use daily simple interest on the balance, which this monthly estimate tracks closely. Unpaid interest can capitalize, meaning it is added to the balance and then accrues its own interest, so paying at least the interest each month matters. See the full method.