What Is This Calculator?

Got student loans? This calculator tells you exactly what your monthly payment looks like and how much interest you will pay over the life of the loan. The average federal student loan debt in 2026 is $37,857 per borrower, and monthly payments typically range from $200 to $500 under standard 10-year repayment. Knowing your number before the grace period ends prevents the shock most graduates feel when that first bill arrives.

Key Takeaways

The Formula

M is your monthly payment, P is the principal (what you borrowed), i is the monthly interest rate (annual rate divided by 12), and n is the total number of monthly payments.

Why This Matters — Real-World Application

You graduated with $35,000 in federal loans at 5.5% interest. Under the standard 10-year plan, that is about $381 per month. But what if you can only afford $250? Extending to 20 years drops the payment to $241 — but total interest jumps from $10,720 to $22,840. That extra decade costs you $12,120 more. On the flip side, paying $100 extra per month on the 10-year plan finishes the loan in 7 years and saves about $3,800 in interest.

Practical Example

Key Factors That Affect Your Results

• Total amount you borrowed (principal)
• Your interest rate (federal rates are fixed; private loans may vary)
• Repayment term (10, 15, 20, or 25 years)
• Whether you make extra payments

Tips for Using This Calculator

• 1The SAVE income-driven plan caps payments at 5% of discretionary income for undergraduate loans starting in 2026 — run both scenarios to see if it beats standard repayment.
• 2Interest capitalization: if you defer payments during the grace period, unpaid interest gets added to your principal. Pay even $50/month during grace to prevent this.
• 3Student loan interest up to $2,500 per year is tax-deductible even if you take the standard deduction — that effectively reduces your interest rate.

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Sources & References