Student Loan Payment Calculator
The Number That Anchors Your Budget
Before a student loan disburses, the monthly payment it will eventually require is already fixed by three numbers: the amount borrowed, the interest rate, and the repayment term. This calculator runs the standard loan amortization formula — the same one used for mortgages and auto loans — against those three inputs to produce the exact fixed payment, along with the total interest that payment implies over the life of the loan.
The Formula
Where M is the monthly payment, P is the loan principal, r is the monthly interest rate (annual rate ÷ 12), and n is the total number of monthly payments (term in years × 12). If the rate is 0%, the payment simplifies to principal divided by the number of payments.
How Rate and Term Move the Payment
| Rate | 10-year term | 20-year term |
|---|---|---|
| 5% | $318.20 | $197.99 |
| 6% | $333.06 | $214.93 |
| 7% | $348.33 | $232.59 |
Doubling the term from 10 to 20 years cuts the payment by close to 40%, but that comes at the cost of roughly double the total interest paid — the payment calculation alone doesn't show that tradeoff, which is why it's worth checking total cost separately.
Where This Calculation Matters
- Pre-borrowing budgeting — knowing the future monthly payment before accepting a loan offer helps size how much to actually borrow.
- Comparing loan offers — two loans with different rate/term combinations can be compared directly on the resulting payment.
- Post-graduation planning — matching the projected payment against an expected starting salary flags affordability issues early.
How to Use This Calculator
- Enter the loan amount in dollars.
- Enter the annual interest rate as a percentage.
- Enter the loan term in years.
- Select Calculate to see the fixed monthly payment, total amount paid, and total interest.
Related Calculations
For the full lifetime cost breakdown of the same inputs, see the Total Cost of Student Loan Calculator, or check the Student Loan Payoff Calculator to see how paying more than this amount shortens the loan.