Student Loan Payoff Calculator
Use this calculator to see how long it will take to pay off your student loan and how much interest you'll pay over the life of the loan. See how making extra payments can save you money and get you out of debt faster.
Payoff Summary
How It's Calculated
This Student Loan Payoff Calculator is designed to help you understand how long it will take to pay off your student loan balance depending on your monthly payments, interest rate, and outstanding balance. The calculator uses the standard NPER (Number of Periods) formula commonly used in finance to determine the exact number of monthly payments required until your loan balance reaches zero.
The formula used is:
N = -ln(1 - (Balance * Rate) / Payment) / ln(1 + Rate)Where:
- Balance = your current loan principal
- Rate = the monthly interest rate (annual interest Ć· 12)
- Payment = the fixed monthly amount you plan to pay
- N = the number of months needed to fully pay off the loan
Once the number of payments is determined, the calculator also computes the total interest paid using:
Total Interest = (Total Payments ā Initial Loan Balance)This gives you a clear breakdown of how much of your money goes toward the principal and how much is spent on interest over the life of the loan.
By adjusting your monthly payment amount or interest rate, you can instantly see how your payoff schedule changesāmaking it easier to plan ahead and potentially save thousands in interest.
Frequently Asked Questions
How can I pay my student loan off faster?
The most effective strategy is to increase your monthly payment. Even a small increaseāfor example, an extra $25 or $50 each monthācan knock years off your repayment timeline and significantly reduce the total interest paid. Another strategy is to make bi-weekly payments instead of monthly, which results in one extra full payment per year.
What if my monthly payment is too low?
If your payment is less than the interest accruing each month, your loan balance will grow instead of shrink. This is called negative amortization. The calculator will alert you if your payment is insufficient to ever pay off the loan so that you can adjust your plan accordingly.
Does making extra payments really save money?
Yes. Every extra payment you make goes directly toward your loanās principal, reducing the amount of future interest that can accrue. Over the course of a 10-year loan, paying just one extra payment per year could save you hundreds or even thousands of dollars in interest.
Whatās the difference between federal and private student loans?
Federal loans usually come with fixed interest rates, forgiveness programs, and income-driven repayment options. Private student loans, on the other hand, may have variable rates and fewer repayment protections. While this calculator works for both types of loans, you should consider loan-specific repayment options when planning your payoff strategy.
Can I use this calculator for multiple loans?
If you have several student loans, you can either calculate each one separately or combine them by adding up the balances and using the weighted average interest rate. This will give you an approximate overall payoff timeline.