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Student Loan Calculator

Calculate student loan payments with grace period and different repayment plans.

Inputs

$
5.5%
015
10 years
130
6 months
024

Results

Monthly Payment
$446.18
Total Payment
$53,541.68
Total Interest
$13,541.68
Balance After Grace Period
$41,112.68
$1,112.68 interest accrued during grace

Disclaimer: This calculator provides estimates for informational purposes only. Results are not financial advice. Consult a qualified financial advisor for decisions about your specific situation. Actual rates, terms, and conditions may vary by lender and individual circumstances.

How Does the Student Loan Calculator Work?

The student loan calculator computes your monthly payment after any grace period, projects your total interest paid, and shows your payoff date. Unlike simple loan calculators, it accounts for interest that accrues during the grace period (typically 6 months after graduation) and whether that interest capitalizes, meaning it gets added to your principal balance, causing you to pay interest on interest. The calculator supports different repayment plans including standard, graduated, and income-driven options, helping you understand the trade-offs between lower monthly payments and higher total interest.

How to Use This Calculator

Enter your total student loan balance, interest rate, and loan term. Select whether you have a grace period and whether interest capitalizes during that period. The calculator shows your monthly payment, total interest, and payoff date. Try different scenarios: see how paying $50-100 extra per month affects your timeline and total cost, or compare a standard 10-year plan versus an extended 25-year plan to understand the monthly versus total cost trade-off.

Example Calculation

Jessica graduates with $35,000 in student loans at 5.5% interest. She has a 6-month grace period where interest accrues and capitalizes.

  1. 1Loan balance = $35,000 at 5.5% APR
  2. 2Grace period interest: $35,000 x 0.055 x (6/12) = $962.50
  3. 3Capitalized balance after grace period = $35,962.50
  4. 4Standard 10-year repayment: $390/month
  5. 5Total payments over 10 years: $390 x 120 = $46,800
  6. 6Total interest paid = $46,800 - $35,000 = $11,800
  7. 7If she pays interest during grace ($160/month): saves $962.50 in capitalization
Result: Jessica will pay $390/month for 10 years, totaling $11,800 in interest. If she pays $160/month during the grace period to cover accruing interest, she saves the $962.50 capitalization and starts repayment on the original $35,000 balance.

Understanding Your Results

Your monthly payment is the amount due each month after the grace period ends. The total interest figure reveals the true cost of borrowing beyond the principal. Compare different repayment periods: a 10-year plan has higher monthly payments but far less total interest than a 20-year plan. The grace period capitalization section shows how much extra you pay by letting interest accumulate versus paying it during the grace period. Even small extra payments can dramatically shorten your payoff timeline.

Tips & Best Practices

  • ✓Pay interest during the grace period to prevent it from capitalizing onto your principal.
  • ✓Income-driven repayment plans lower monthly payments but often increase total interest paid significantly.
  • ✓Look into employer student loan repayment benefits — more companies are offering them as a perk.
  • ✓Consider refinancing if you can get a significantly lower interest rate, but understand that refinancing federal loans into private loans forfeits federal protections.
  • ✓Making biweekly payments instead of monthly results in one extra payment per year, saving thousands over the life of the loan.

Frequently Asked Questions

Should I pay off student loans or invest?▾
If your loan interest rate is above 6-7%, prioritize paying it off — that is a guaranteed, risk-free return. If your rate is below 4%, investing may produce higher returns over time since the stock market historically returns about 10%. For rates between 4-6%, a balanced approach works: make minimum loan payments while also contributing to a 401(k) up to the employer match, then decide based on your risk tolerance.
What happens to interest during the grace period?▾
For unsubsidized and private loans, interest accrues during the grace period at your full rate. If you do not pay it, the unpaid interest is capitalized (added to your principal), meaning you end up paying interest on interest for the remaining loan term. For subsidized federal loans, the government covers interest during the grace period. Paying even just the interest during the grace period can save hundreds or thousands over the life of the loan.
Should I refinance my student loans?▾
Refinancing makes sense if you can lower your interest rate significantly (by 1% or more) and have stable income. However, refinancing federal loans into private loans means losing access to income-driven repayment plans, Public Service Loan Forgiveness, and federal forbearance options. Only refinance federal loans if you are confident you will not need these protections and the rate savings are substantial.
What is income-driven repayment?▾
Income-driven repayment (IDR) plans cap your monthly payment at a percentage of your discretionary income, typically 10-20%. This lowers payments significantly for low-income borrowers. After 20-25 years of payments, any remaining balance is forgiven. However, IDR plans often result in paying much more total interest because of the extended timeline. They are best for borrowers with high debt relative to income.
How much do extra payments really save?▾
Extra payments can save thousands. On a $35,000 loan at 5.5% with a 10-year term: adding just $50/month saves $1,568 in interest and pays off the loan 15 months early. Adding $100/month saves $2,825 and pays off 26 months early. Extra payments go directly to principal, reducing the balance that earns interest for the remaining term.
By CalcMaven Editorial TeamLast Updated: February 2026

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Free Student Loan Calculator — Repayment Planner | CalcMaven