Student Loan Calculator

It treats the entered principal as one fixed-rate loan with equal monthly periods. The payment is the level amount whose discounted payments equal that principal. Each estimated month then adds interest on the remaining balance and uses the rest of the payment to reduce principal. A zero-percent loan is simply divided across the selected number of months.

Federal Direct Loans accrue simple interest daily, so the interest between two payments depends on the exact number of days. This calculator uses equal monthly periods to give a stable fixed-payment estimate. Capitalization, fees, subsidies, rate discounts, payment timing and your servicer’s rounding can also change a real statement.

Enter the current principal balance for the loan or fixed-rate loan group you want to model. If unpaid interest has already capitalized, it is part of principal and should be included. Do not add uncapitalized accrued interest to principal; this calculator does not model a separate accrued-interest balance.

It can when the excess is applied to principal. A smaller principal produces a smaller next interest charge, so the saving compounds across later payments. The CFPB warns that a servicer may instead put an account in paid-ahead status. Give allocation instructions and check the next statement to confirm how the excess was used.

No. It is a fixed-payment amortization estimate based only on principal, rate, term and an optional extra amount. Income-driven plans, eligibility rules, interest benefits, deferment, forbearance and forgiveness require borrower and loan details that are deliberately outside this model. Use the official Federal Student Aid Loan Simulator for plan comparisons.

The required payment is principal divided by the number of months, total interest is zero, and the final payment is adjusted for any cent left by rounding. Zero is supported because the ordinary annuity formula divides by the periodic rate and therefore needs this exact mathematical branch.