Student Loan Payoff Planner

What this estimate assumes

• A single, fixed interest rate for the entire repayment period — it doesn't model a variable rate, or a rate change from refinancing partway through.
• The "standard plan" models a simple fixed-term amortization, exactly like the standard federal 10-year repayment plan — not an income-driven repayment plan, which calculates your payment from your income rather than from the loan balance and works very differently.
• It doesn't account for loan forgiveness programs, which have their own separate eligibility rules, timelines, and payment structures.

How to use this calculator

1. Enter your current balance in Student loan balance ($) — use your current payoff balance, not the original amount borrowed.
2. Enter your rate in Interest rate (APR %).
3. Enter the length of your standard repayment plan in Standard repayment term (years) — 10 years is the standard federal plan, though some loans use different terms.
4. Optionally, enter an extra amount you can add on top of the standard payment every month in Optional extra monthly payment ($) to see how much time and interest that extra payment would save.
5. Click Calculate payoff plan.
6. Read the result for your standard monthly payment and total interest, plus — if you entered an extra payment — the faster payoff time and interest savings that extra amount produces.

Worked example

Take the calculator's own defaults: a $32,000 balance, a 6.0% APR, and a 10-year (120-month) standard term, with no extra payment entered.

Convert the APR to a monthly rate: 6.0% ÷ 12 = 0.5% per month, or r = 0.005. Over n = 120 months, the standard fixed-payment amortization formula is:

payment = balance × [r × (1+r)ⁿ] ÷ [(1+r)ⁿ − 1]

First, (1.005)¹²⁰ — using ln(1.005) × 120 ≈ 0.5985, so e^0.5985 ≈ 1.8194. Plugging that in: amortization factor = [0.005 × 1.8194] ÷ [1.8194 − 1] = 0.009097 ÷ 0.8194 ≈ 0.011102. Multiply by the balance: $32,000 × 0.011102 ≈ $355.27/month.

Total paid over the full term is 355.27 × 120 ≈ $42,632, so total interest = $42,632 − $32,000 ≈ $10,632 over the standard 10-year plan.

Now add a $100/month extra payment on top of that $355.27. The calculator simulates this month by month: your required payment stays at $355.27 (adding extra doesn't lower what's contractually owed), but the full $455.27 is applied every month, and each month's interest is calculated on a smaller remaining balance than the month before. Because every extra dollar goes straight to principal, the balance shrinks faster, next month's interest charge drops a little more, and the effect compounds — the loan pays off well before the 10-year mark and total interest drops well below $10,632. The exact number of months and dollars saved depend on the extra amount, so enter your own figure in the calculator's extra-payment field to see the precise result for your situation.

Frequently asked questions

What's the difference between the standard plan and income-driven repayment?

The standard plan shown here uses a fixed monthly payment, calculated so the loan is fully paid off over a set term (commonly 10 years for federal loans) — the same amortization math used for a mortgage or car loan. Income-driven repayment plans instead set your payment as a percentage of your discretionary income, which can rise or fall as your income changes, often stretch the repayment period well beyond 10 years, and may lead to loan forgiveness of any remaining balance after a set number of years. The two approaches produce very different payment amounts and total costs, so this calculator's numbers won't match an income-driven plan's payment.

If I pay extra, does that lower my required minimum payment next month?

Usually not, unless you specifically ask your servicer to re-amortize the loan. Typically, extra payments reduce your principal balance and shorten how long it takes to pay off the loan, but your contractually required minimum payment stays the same each month — which is exactly how this calculator treats it. Always confirm with your loan servicer that extra payments are being applied to principal and not simply counted as an early payment on next month's bill.

Should I refinance my student loans to a lower rate instead of paying extra?

They're not mutually exclusive, but they work differently. Refinancing can lower your rate (and therefore your required payment and total interest) if you qualify for better terms than you currently have, while paying extra attacks the same balance faster at your existing rate. Note that refinancing federal loans into a private loan means giving up federal protections like income-driven repayment and loan forgiveness eligibility, so weigh that trade-off carefully before refinancing federal debt.

Does this account for loan forgiveness programs?

No. This calculator models a simple fixed-term amortization, assuming you pay the loan down to zero yourself. It doesn't model Public Service Loan Forgiveness, income-driven repayment forgiveness, or any other forgiveness program, all of which have their own eligibility rules and timelines that work very differently from a standard payoff schedule.

Why does the interest rate matter so much over a 10-year term?

Because interest compounds on your remaining balance every month for the full life of the loan, a higher rate doesn't just raise your payment slightly — it meaningfully increases the total interest paid over 10 years. Try raising the rate in the calculator by even a percentage point or two and compare the standard monthly payment and total interest to see how much a rate difference actually costs over a full decade.

Is it better to pay extra toward student loans or invest that money instead?

It depends on your loan's interest rate compared to what you'd realistically expect to earn investing, and how much you value a guaranteed result over a risked one. Paying extra toward a loan is a guaranteed return equal to that loan's rate; investing carries market risk but has historically outperformed low, fixed-rate debt over long periods. This calculator only models the loan side of that decision, not an investment projection.