What does this tool do?
A student loan payment depends on the amount borrowed, the interest rate and the repayment term. This calculator uses a standard fixed-rate amortisation formula to estimate the monthly payment and total interest.
The Formula
Monthly payment = P × r ÷ (1 − (1 + r)^−n), where r = APR ÷ 12 and n = years × 12Frequently Asked Questions
How can I reduce total interest?
A shorter term or extra principal payments reduce the interest paid, though a shorter term raises the required monthly payment. Check whether your lender charges prepayment penalties.
Does the calculation include interest during school?
No. It assumes repayment starts immediately and interest accrues on the stated balance. Deferment, forbearance and subsidised loans change the total cost.