Calculate your monthly student loan payments, total interest, and see a complete amortization schedule. Plan your student loan repayment strategy.
Student loan payments are calculated using an amortization formula that considers your loan amount (principal), interest rate, and repayment term. The monthly payment remains constant throughout the loan term, but the portion going toward principal versus interest changes over time. Early payments consist mostly of interest, while later payments apply more toward the principal balance.
Understanding your loan payment structure helps you make informed decisions about repayment strategies, refinancing options, and whether to make extra payments to reduce total interest costs.
The monthly payment for a student loan is calculated using this formula:
M = P × [r(1 + r)^n] / [(1 + r)^n - 1]
Where:
In the beginning of your loan term, a larger portion of each payment goes toward interest. This is because interest is calculated on the remaining principal balance, which is highest at the start.
As you pay down the principal, less interest accrues each month. By the end of your loan term, most of each payment goes toward principal, helping you pay off the loan faster.
The most common repayment term with fixed monthly payments over 10 years (120 months). This plan minimizes total interest paid but has higher monthly payments.
Lower monthly payments spread over 20-25 years, making payments more manageable but significantly increasing total interest paid over the life of the loan.
Payments start lower and increase every two years, typically over 10 years. Good for borrowers expecting income growth but results in more total interest than standard plans.
Paying more than the minimum monthly payment reduces your principal balance faster, which decreases the total interest you'll pay. Even small extra payments can save thousands over the loan term.
If you have good credit and stable income, refinancing to a lower interest rate can significantly reduce your monthly payment and total interest costs. Compare offers from multiple lenders.
While monthly payments are higher, shorter repayment terms (5-10 years) dramatically reduce total interest paid compared to extended 20-25 year plans.
Many lenders offer a 0.25% interest rate reduction when you enroll in automatic payments. This small reduction can save hundreds of dollars over the life of your loan.
Explore other student and financial calculators:
Estimate potential scholarship amounts
Calculate your grade point average
Calculate cumulative college GPA
Calculate any type of loan payment
Calculate savings growth over time
Calculate compound interest growth