Debt
Student loan payoff calculator
Enter your loan balance, interest rate and term to see your standard payment, then add an extra payment to see the interest and months saved.
Some inputs need attention. The results below are from your last valid entries.
Assumptions
Assumes a fixed rate and equal monthly payments with interest accruing monthly on the balance. Income-driven plans, forgiveness, deferment, capitalization and rate changes are not modeled. Ask your servicer to apply extra money to principal.
Remaining student loan balance
| Year | Balance (standard) | Balance (with extra) |
|---|---|---|
| 1 | $32,299 | $31,069 |
| 2 | $29,447 | $26,916 |
| 3 | $26,433 | $22,529 |
| 4 | $23,249 | $17,894 |
| 5 | $19,886 | $12,998 |
| 6 | $16,333 | $7,825 |
| 7 | $12,579 | $2,361 |
| 8 | $8,614 | $0 |
| 9 | $4,425 | $0 |
| 10 | $0 | $0 |
How student loan payoff works
Most standard student loans are fixed-rate installment loans: you pay the same amount each month for a set term. Early payments are mostly interest, and over time more of each payment reduces principal. Adding an extra amount each month cuts principal faster, so the interest that accrues afterward is smaller.
Methodology
The standard payment is PMT = P·r / (1 − (1 + r)^−n) where r is the annual rate divided by 12 and n is the term in months (at 0% it is P ÷ n). A month-by-month simulation then adds interest on the remaining balance and subtracts the payment, once for the standard payment and once with your extra amount included. The difference in total interest is the interest saved; the difference in months is the time saved. The final payment is trimmed to the amount still owed.
What this does not cover
Federal loans can include income-driven repayment, deferment, forbearance and forgiveness programs, and interest may capitalize in some situations. Those options change the math and are outside this simple model. Private loans have their own terms. Read your servicer’s documents and confirm details on the official StudentAid.gov site for federal loans.
Deciding where extra money goes
- Compare your loan rate with other goals: a high-rate card comes first, while a low-rate loan may compete with investing. See the compound interest calculator and the snowball vs avalanche guide.
- Keep an emergency buffer in place; the emergency fund calculator can help size it.
- For other fixed-rate debt, try the loan payment calculator.
Frequently asked questions
Should I pay extra on student loans or invest?
It depends on your loan rate, your risk tolerance, whether you have an employer match available, and your emergency savings. Paying down debt is a guaranteed return equal to the rate; investment returns are uncertain. This calculator only shows the debt side.
Does an extra payment go to principal automatically?
Not always. Servicers may apply extra money to future payments or interest first. Ask them to apply it to principal, and confirm this on your statement.
Does this work for federal income-driven plans?
No. Those payments depend on your income and family size and may involve forgiveness, so they need a different calculator, such as the one on StudentAid.gov.
What rate should I use with several loans?
Use a weighted average based on each loan's balance and rate, or run each loan separately for a more accurate result.
This calculator is for education and illustration. It does not account for taxes, fees or your personal situation unless stated, and is not financial advice.
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