How this calculation works
The Student Loan Calculator determines your standard monthly repayment, total interest cost, and shows how extra monthly payments can shave years off your debt timeline.
Mathematical formula and logic
Monthly Payment = P × [r(1 + r)^n] / [(1 + r)^n - 1], where P = Principal balance, r = Monthly interest rate (Annual rate / 12), and n = Total repayment months.
Worked example
For a $35,000 student loan at 5.5% annual interest over a 10-year term with $50 extra monthly payment: Standard EMI is $379.91/month. Adding $50/month ($429.91 total) pays off the loan 1.6 years early and saves $1,850 in interest.
Calculation assumptions
- Interest rate remains fixed throughout the loan tenure.
- Payments are made on time every month.
- Extra monthly payments are applied directly to reducing principal balance.
Frequently asked questions
What is the standard repayment plan for federal student loans?
The standard federal student loan repayment plan is a 10-year (120-month) fixed payment schedule designed to minimize total interest paid compared to income-driven plans.
How much interest do extra payments save on student loans?
Extra payments reduce your principal balance faster, which compounds interest savings over time. Paying an extra $50 to $100 per month can save thousands of dollars and shorten your payoff date by multiple years.
Are student loan interest payments tax deductible?
In the United States, eligible borrowers can deduct up to $2,500 of student loan interest paid per year on their federal income tax return under IRS Section 221.
What is the difference between subsidized and unsubsidized student loans?
With Direct Subsidized Loans, the federal government pays interest while you are in school at least half-time. With Unsubsidized Loans, interest begins accruing immediately upon disbursement.
Should I refinance my student loans to a lower rate?
Refinancing federal loans with a private lender can secure a lower interest rate, but you permanently forfeit federal protections like income-driven repayment (IDR), forbearance, and Public Service Loan Forgiveness (PSLF).