Student Loan Payoff Calculator

This Student Loan Payoff Calculator helps you plan your debt-free journey by estimating how long it will take to pay off your student loans. Compare repayment strategies, see the impact of extra payments and lump sums, and visualize your path to financial freedom with interactive charts, a detailed amortization schedule, and payoff milestones.

How Student Loan Repayment Works

Each monthly payment on a student loan consists of two parts: interest and principal. Interest is calculated on your remaining balance using your annual rate divided by 12. Early in the loan, most of your payment goes toward interest. As the balance decreases, more goes to principal, creating the classic amortization curve.

Strategies to Pay Off Student Loans Faster

How to Use This Calculator

1. Enter your loan balance: Input the current amount you owe, found on your loan servicer's website or statement.
2. Enter your interest rate: Your annual interest rate (e.g., 5.5 for 5.5%). Check your loan terms for the exact rate.
3. Enter your monthly payment: The amount you pay each month. Must be more than the monthly interest charge.
4. Add extra payments (optional): Enter any additional monthly amount and/or a one-time lump sum to see the impact.
5. Review results: See your payoff date, total interest, comparison scenarios, and amortization schedule.

Understanding Your Results

• Payoff Date: The estimated month and year when your balance reaches zero.
• Total Interest: The cumulative interest paid over the entire loan life.
• Total Cost: Your original balance plus all interest paid — this is the true cost of the loan.
• Interest Saved: How much you save in interest by making extra payments compared to the base scenario.
• Comparison Table: Automatically generated scenarios showing how $50, $100, and $200 extra payments affect your timeline.

Frequently Asked Questions

How is student loan interest calculated?

Student loan interest is typically calculated daily based on your outstanding balance and annual interest rate. The daily rate is your annual rate divided by 365.25. Each day, interest accrues on your remaining principal. When you make a monthly payment, part goes to accrued interest and the rest reduces your principal balance.

Can I pay off my student loans early without penalty?

Yes, federal student loans have no prepayment penalties, so you can pay extra or pay off the loan early without additional fees. Most private student loans also do not charge prepayment penalties, but check your loan agreement to confirm.

How much can I save by making extra payments?

The savings depend on your balance, rate, and extra amount. For example, on a $35,000 loan at 5.5% with $350/month payments, adding $100/month can save thousands in interest and shorten your payoff by years. Use the calculator above to see exact numbers for your situation.

Should I make lump sum payments or increase monthly payments?

Both strategies reduce total interest. A lump sum immediately reduces principal so less interest accrues. Increasing monthly payments provides consistent acceleration. If you have extra savings, a lump sum applied early yields more interest savings than the same amount spread over monthly payments.

What is the standard repayment plan for federal student loans?

The Standard Repayment Plan is a 10-year (120 months) fixed payment plan. Your payment is calculated to pay off the loan in exactly 10 years. While this minimizes total interest among federal plans, the monthly payments may be higher than income-driven plans.

Additional Resources

• Federal Student Loan Repayment Plans - StudentAid.gov
• Student Loan - Wikipedia