Student Loan Calculator
See your monthly payment, total interest, and how extra payments can save you thousands.
Last updated April 2026
Disclaimer: This calculator is for general educational and informational purposes only. It does not constitute financial advice, investment advice, tax advice, or legal advice and is not a substitute for consultation with a qualified professional. No fiduciary or advisory relationship is created by your use of this tool. Results are estimates based on the inputs you provide, standard mathematical formulas, and publicly available data that may not be current and may not reflect your individual financial situation, applicable tax laws, or other relevant factors. Neither MayoCalc nor Cook Media Systems assumes any liability for losses, damages, or other consequences arising from the use of any information or results provided by this tool. Always consult a qualified financial advisor, certified public accountant, or attorney before making financial decisions. See our full
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How Student Loan Payments Work
Student loans use standard amortization, the same as mortgages and auto loans. Your fixed monthly payment covers interest first, with the remainder reducing principal. Federal student loans have fixed interest rates set by Congress each year. Private student loans may have fixed or variable rates. The standard federal repayment plan is 10 years (120 payments), though income-driven plans can extend to 20-25 years.
How to Use This Calculator
Enter your total loan balance, interest rate, and loan term. The calculator shows your monthly payment, total interest over the life of the loan, and a full amortization schedule. You can also enter extra monthly payments to see how they shorten your payoff and reduce total interest. For multiple loans at different rates, enter each separately to prioritize which to pay off first.
Repayment Strategies
Standard repayment (10 years): Highest monthly payment but lowest total interest. Income-driven repayment: Payments capped at a percentage of discretionary income, with forgiveness after 20-25 years. Remaining balance is forgiven but may be taxable. Refinancing: Replace federal or private loans with a new private loan at a lower rate. This can save significant interest but forfeits federal protections like income-driven plans and Public Service Loan Forgiveness. Extra payments: Even $50-100 extra per month can save thousands in interest and shorten payoff by years. Our guide on paying off student loans faster covers all strategies in detail.
Student Loan FAQ
Should I pay off student loans or invest?
Compare your loan interest rate to expected investment returns. If your rate is 3-4%, investing in the stock market (historically 7-10% annually) likely produces a better return. If your rate is 6-8%, paying off the loans gives a guaranteed return that is hard to beat. In either case, always capture any employer 401(k) match first.
Should I refinance federal student loans?
Only if you are certain you will not need federal protections (income-driven plans, forbearance, Public Service Loan Forgiveness). Refinancing to a private loan is permanent. If you have a stable income, are not pursuing PSLF, and can get a significantly lower rate, refinancing can save substantial money.
Is student loan interest tax deductible?
You can deduct up to $2,500 in student loan interest per year if your modified adjusted gross income is below $80,000 (single) or $165,000 (married filing jointly). The deduction phases out at higher incomes. You do not need to itemize to claim this deduction.
Federal Student Loan Repayment Options
Federal student loans offer multiple repayment plans. The Standard Plan (10-year fixed payments) minimizes total interest but has the highest monthly payments. Extended plans stretch repayment to 25 years, reducing monthly payments but significantly increasing total interest. Income-Driven Repayment (IDR) plans cap payments at 10-20% of discretionary income and forgive remaining balances after 20-25 years. The SAVE plan (Saving on a Valuable Education) is the newest IDR option, offering the lowest payments for most borrowers.
The average student loan balance is approximately $38,000 for bachelor's degree graduates. On the Standard Plan at 5.5% interest, this produces monthly payments of $412 and total interest of $11,484. On an IDR plan with a $45,000 starting salary, initial payments may be as low as $150-$200/month, but total costs (including interest capitalization) can be substantially higher over the extended repayment period. Public Service Loan Forgiveness (PSLF) offers tax-free forgiveness after 120 qualifying payments (10 years) for borrowers working in government or nonprofit roles. The Loan Payoff Calculator models extra payment strategies for accelerated payoff.
Student Loan Interest Rates (2026)
Federal student loan interest rates for the 2025-2026 academic year are set annually based on the 10-year Treasury note yield. For undergraduate Direct Subsidized and Unsubsidized Loans, the rate is fixed for the life of the loan. Graduate Direct Unsubsidized Loans carry a higher rate, and Parent and Grad PLUS loans are higher still. Private student loan rates vary by lender and creditworthiness, typically ranging from 4% to 14% APR. Use this calculator to model any interest rate and see how it affects your monthly payment and total cost over the life of the loan.
Student Loan Repayment Plans Compared
Standard Repayment (10 years): Fixed monthly payments over 120 months. This plan minimizes total interest paid. Graduated Repayment: Payments start lower and increase every two years. Total interest is higher than standard. Extended Repayment (25 years): Available for balances over $30,000. Lower monthly payments but significantly more total interest. Income-Driven Plans (IDR): Payments are based on income and family size (10-20% of discretionary income). Remaining balance forgiven after 20-25 years. For strategies to pay off loans faster, see our guide on How to Pay Off Student Loans Faster.
How Student Loan Interest Works
Student loan interest accrues daily on the outstanding principal balance. The daily interest rate is your annual rate divided by 365.25. On a $30,000 loan at 5.5%, daily interest is approximately $4.52. Over a standard 10-year repayment, you would pay approximately $8,800 in total interest, making the true cost of the loan $38,800. Paying even $50 extra per month reduces the payoff time by about 14 months and saves approximately $1,200 in interest. The Loan Payoff Calculator models the impact of extra payments on any loan.
Average Student Loan Debt (2026)
The average student loan balance for bachelor's degree holders is approximately $29,400 according to the most recent Federal Reserve data. Total outstanding student loan debt in the United States exceeds $1.75 trillion, making it the second-largest category of consumer debt after mortgages. Monthly payments on the average balance at current rates are approximately $310-$340 under the standard 10-year plan. Understanding your specific numbers is the first step toward a payoff strategy, whether that is aggressive repayment, income-driven plans, or refinancing to a lower rate.
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