Student Loan Calculator

What this student loan calculator does

It converts a total amount borrowed into the monthly reality of repaying it: what you will pay each month, for how long, and what the education will have cost once interest is included. Student debt is usually taken on before anyone has income to judge it against, so seeing the repayment figure in advance is the single most useful thing a borrower can do.

The formula behind it

Standard repayment uses the amortization formula P × r × (1 + r)ⁿ / ((1 + r)ⁿ − 1), where P is the total borrowed, r the monthly rate and n the number of monthly payments. Borrowing 40,000 at 6% over ten years produces a payment near 444 and total interest around 13,300 — a third again on top of the principal.

How to use this calculator

Enter the total amount borrowed, the interest rate and the repayment term in years. The result shows the monthly payment, the total repaid and the total interest. A common rule of thumb is to keep total borrowing below the salary you realistically expect in your first year of work; run that expected salary against this payment to see whether the ratio is manageable.

Repaying it sensibly

Interest on many loans accrues while you are still studying, so any payment made during that period reduces the balance that later compounds. If you hold several loans, target the highest rate first. Income-driven and government schemes can lower payments substantially but usually extend the term and increase total interest, so treat them as protection against hardship rather than as the cheapest route. Always confirm that extra payments are applied to principal rather than counted as advance instalments.