Loan Forgiveness Calculator
Tracking Progress Toward a Forgiven Balance
Programs like Public Service Loan Forgiveness discharge whatever balance remains after a set number of qualifying payments — typically 120 — regardless of how large that remaining balance is. That makes two numbers worth watching simultaneously: how many qualifying payments you've made, and what the loan's remaining balance will look like at the finish line. This calculator projects both, using the same amortization math your servicer applies to the loan each month.
The Formula
Where P is the starting balance, r is the monthly interest rate, M is the monthly payment, and n is the number of qualifying payments made — this is the standard remaining-balance formula for an amortizing loan. Once qualifying payments made reach the required count, whatever balance B(n) computes to is the amount forgiven.
Remaining Balance as Qualifying Payments Accumulate
| Qualifying payments made | Remaining balance |
|---|---|
| 0 | $80,000.00 |
| 36 (3 years) | $68,199.17 |
| 60 (5 years) | $59,068.99 |
| 90 (7.5 years) | $46,006.72 |
| 120 (10 years) | $30,836.20 — forgiven |
At $700/month against $80,000 at 6%, roughly $30,836 is still outstanding after 120 payments — that entire remaining amount is what gets discharged under a 120-payment forgiveness program.
Where This Calculation Matters
- PSLF tracking — public-sector and nonprofit employees on Public Service Loan Forgiveness need to know both payments-remaining and projected balance-at-forgiveness to plan finances around the discharge date.
- Comparing IDR payment levels — a lower income-driven payment leaves more balance to forgive, which is often the intended outcome rather than a downside.
- Employer and career decisions — knowing how close you are to the required payment count factors into decisions about staying in qualifying public-service employment.
How to Use This Calculator
- Enter your starting loan balance.
- Enter the annual interest rate.
- Enter your current monthly payment amount.
- Enter the number of qualifying payments you've already made.
- Enter the total qualifying payments required for forgiveness (120 for standard PSLF).
- Select Calculate to see either the forgiven amount (if you've met the requirement) or how many qualifying payments remain and the projected balance at that point.
Related Calculations
Pair this with the Income-Driven Repayment Calculator to find the qualifying payment amount your income produces, or use the Student Loan Payoff Calculator to compare against paying the loan off outright instead.