Student loan calculator
Student loans often start with a grace period before repayment. Enter the amount, rate and grace months, choose whether the interest from the grace period is added to the balance, and see the payment and the total cost.
Runs in your browser: nothing you enter is sent anywhere.
How to use it
- Enter the amount, yearly rate, grace months and repayment term.
- Pick whether grace-period interest is added to the balance or paid as it accrues.
- Read the payment, the balance at the start of repayment and the total interest.
How it works
Grace-period interest = amount × rate ÷ 12 × grace months. If it is added to the balance, repayment starts on amount + that interest; otherwise on the amount. The monthly payment is the level annuity payment on that balance over the term. Total interest = grace interest + interest paid in repayment.
Worked example
30,000 at 6% with a 6-month grace period and a 10-year term. Grace interest is 30,000 × 0.005 × 6 = 900. Added to the balance, repayment starts at 30,900 and the payment is about 343.05 a month. If the 900 is paid during the grace period, repayment starts at 30,000 and the payment is about 333.06.
Tips
- Paying the interest during the grace period lowers the payment and the total cost.
- Extra payments shorten the loan; see the loan calculator for the schedule of a plain loan.
- Compare offers with the loan comparison calculator.
Frequently asked questions
How is a student loan payment calculated?
As an ordinary level monthly payment on the balance at the start of repayment: P × r ÷ (1 − (1 + r)^−n), with r the annual rate divided by 12 and n the number of months.
What does it mean when interest is capitalized?
The interest that built up during the grace period is added to the loan balance when repayment starts, so later interest is charged on a larger amount. Choose the other option to see the loan if you pay that interest as it accrues.
Does this match my lender's figures?
It is a simplified estimate: interest in the grace period is counted as rate ÷ 12 per month on the original amount, with no fees, subsidies or daily interest. Rules vary by lender and country, so use your loan agreement for exact numbers.
How is this different from the loan calculator?
The plain loan calculator starts repayment immediately. This one adds a grace period and the capitalization choice, which change both the balance and the total interest.