How to use the Student Loan Calculator
- Enter your total balance at graduation, including any interest capitalised during school.
- Enter your weighted average interest rate if you hold multiple loans.
- Set the repayment term — federal standard is 10 years, extended plans run 20 to 25.
- Compare monthly payment against expected starting salary to sanity-check the debt load.
How the calculation works
Federal unsubsidised loans accrue interest while you study, and that interest capitalises at repayment, so the starting balance is often several thousand dollars above the amount borrowed. Entering the post-capitalisation figure gives a realistic payment.
The standard ten-year plan minimises lifetime interest among federal options. Extended and graduated plans lower the monthly figure but can nearly double total interest, which matters most for balances above one year's expected salary.
A common benchmark is that total student debt should stay below your expected first-year salary; at that level the standard payment lands near 8–10% of gross income, which most budgets absorb without hardship.
Payment = B × r ÷ [1 − (1 + r)⁻ⁿ], where B includes capitalised interestSource: U.S. Department of Education Federal Student Aid repayment plan definitions, 34 CFR 685.208.
Worked example
$35,000 balance at 6.53% on a 10-year standard plan.
- Monthly rate 0.5442% over 120 payments.
- Payment is about $398 a month.
- Total repaid is roughly $47,700.
About $12,700 of interest — around 36% on top of the amount borrowed.
Frequently asked questions
Should I refinance federal loans privately?+
Only if you will never need income-driven repayment, forbearance or forgiveness — refinancing federally-held debt permanently forfeits those protections.
Which loan should I overpay first?+
The highest-rate loan, and instruct the servicer explicitly, since default allocation spreads extra payments proportionally.
Does interest accrue during grace?+
On unsubsidised and private loans, yes. Subsidised federal loans do not accrue during the six-month grace period.
Last reviewed September 1, 2026. We review this page whenever the underlying formula, tax year, published rate or standard changes.