Calculate student loan payments for federal and private loans. Includes grace period, capitalized interest, and total repayment cost over 10–25 year terms.
Student loans are a reality for millions of graduates. Understanding your repayment obligation — how much you owe each month, how long it takes to pay off, and how much interest accumulates — is the first step toward managing education debt effectively.
Federal student loans typically come with a 6-month grace period after graduation before payments begin. During this grace period, interest may still accrue (on unsubsidized and private loans), and that interest capitalizes — it gets added to your principal balance, increasing the total amount you repay.
This Student Loan Calculator handles both federal and private loans. Enter your loan balance, interest rate, and repayment term to see your monthly payment, total interest, and total repayment cost. The grace period option shows how capitalized interest increases your effective balance before payments even start. Running the numbers before you sign a promissory note is one of the most important financial steps a student or parent can take, allowing you to borrow only what you can realistically repay.
Many graduates are shocked when they see their first monthly statement. This calculator prepares you by showing exactly what to expect — and how different repayment strategies (shorter terms, extra payments) can save thousands in interest over the life of the loan. Borrowers who model repayment before signing are far less likely to face unmanageable payments after graduation, and they can set realistic expectations for their post-college budget.
If unsubsidized: Capitalized Balance = Principal × (1 + r/12)^grace_months. Monthly Payment M = Balance × r/12 × (1+r/12)^n / ((1+r/12)^n − 1). Total Interest = (M × n) − Balance. Total Cost = M × n.
Result: $386/mo — $11,254 total interest — $46,254 total cost
A $35,000 unsubsidized loan at 5.5% accrues $962 in interest during the 6-month grace period. This capitalizes, making the effective balance $35,962. Over 10 years, the monthly payment is $390, with $11,787 in total interest. Had the loan been subsidized (no grace period interest), the payment would be $380 with $10,575 in interest.
Federal loans offer fixed rates set by Congress, income-driven repayment plans, deferment and forbearance options, and potential forgiveness programs. Private loans offer variable or fixed rates set by the lender with fewer protections. Always exhaust federal options before borrowing privately.
A 10-year repayment on $35,000 at 5.5% costs about $11,000 in interest. Extending to 20 years drops the payment by $130/month but increases total interest to $24,000 — more than double. Only extend the term if the standard payment is genuinely unaffordable.
Make biweekly payments (26 half-payments = 13 full payments per year), apply windfalls (tax refunds, bonuses) to the principal, and target the highest-rate loan first. Even an extra $50/month can save thousands in interest and years on your repayment timeline.
A grace period is the time after graduation (or dropping below half-time enrollment) before you must start making payments. Federal loans have a standard 6-month grace period. During this time, subsidized loan interest is paid by the government, but unsubsidized loan interest accrues and capitalizes.
Capitalization means unpaid interest is added to your principal balance. Once capitalized, you pay interest on the larger balance going forward. This is why unsubsidized loans end up costing more — the grace period interest compounds on top of your original balance.
Subsidized loans (available based on financial need) do not accrue interest during school, grace periods, or deferment. Unsubsidized loans accrue interest from the day of disbursement regardless of your enrollment status. This makes subsidized loans significantly cheaper over time.
The standard federal repayment plan is 10 years (120 payments). Extended plans go up to 25 years. Income-driven plans have 20- or 25-year terms with possible forgiveness. The longer the term, the lower the monthly payment but the more total interest you pay.
Yes. You can deduct up to $2,500 of student loan interest per year on your federal tax return, even if you do not itemize. The deduction phases out at higher incomes. This applies to both federal and qualified private student loans.
Compare the loan interest rate to expected investment returns after taxes. If your loan rate is above 6-7%, paying it off is generally the safer choice. Below 4-5%, investing may provide better long-term returns. Between 4-7%, it depends on your risk tolerance and financial situation.