Student Loan Calculator – Payment & Payoff Date

How student loan payments are calculated

Most student loans are repaid like any other installment loan: a fixed monthly payment covers that month's interest and pays down part of the principal. Early payments go mostly to interest; as the balance falls, more of each payment reduces what you owe. The standard repayment term for U.S. federal student loans is 10 years, while private loans and Canada Student Loans often run longer.

Worked example

A $35,000 balance at 6.4% over 10 years has a monthly payment of about $396 and costs roughly $12,500 in interest. Adding $100 a month pays it off about two and a half years sooner and saves around $3,400 in interest — the calculator above shows exact figures for your loan.

Strategies to pay off student loans faster

• Pay extra toward principal: even small extra payments shorten the loan, because every extra dollar avoids future interest. Ask your servicer to apply extra payments to principal, not to future payments.
• Target the highest rate first (the avalanche method) if you have several loans, while paying the minimum on the rest.
• Use autopay: many U.S. servicers reduce your rate by 0.25 percentage points when you enroll.
• Refinance carefully: refinancing federal loans into a private loan can lower the rate but permanently gives up federal protections such as income-driven repayment, deferment and forgiveness programs.

Income-driven repayment and forgiveness

U.S. federal borrowers may qualify for income-driven repayment plans that cap payments based on income, and Public Service Loan Forgiveness for those working in government or non-profit jobs. Federal repayment rules have changed significantly in recent years, so check the current options at studentaid.gov before choosing a plan. In Canada, the Repayment Assistance Plan (RAP) can lower or pause payments based on family income, and federal Canada Student Loans no longer charge interest. Some provincial student loans still charge interest.

Is it better to invest or pay off student loans?

If your loan rate is higher than the return you can reasonably expect after tax, paying it down is a guaranteed "return" equal to the interest rate. Low-rate loans can make sense to keep while you build an emergency fund and capture any employer retirement match first.

Grace periods and capitalized interest

Many student loans have a grace period — six months for most U.S. federal loans — before repayment begins. Interest may still accrue during school and the grace period on unsubsidized loans, and in some cases unpaid interest is capitalized (added to the principal), which increases the balance you repay. Paying the interest as it accrues, even while in school, keeps your balance from growing and lowers the payment once repayment starts.

Frequently asked questions

Sources & methodology

This calculator was last reviewed on November 2, 2026. Figures are based on the following official and primary sources:

• Federal Student Aid – Repayment plans
• Government of Canada – Repaying your student loan

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