Student Loan Calculator
Estimate monthly student loan payments, total interest and payoff timeline for federal and private student loans.
US federal loans commonly use the 10-year standard plan.
Monthly payment
$325.58
Payoff time
10 years
120 months
Total payment
$39,069
Total interest
$9,069
Estimate for an amortized student loan. Income-driven plans can lower the monthly payment but extend the term and total interest.
How it works
Standard plan uses the amortising formula over 120 months. Interest accrues daily as (rate ÷ 365) × balance.
Example: $30,000 at 5.5% for 10 years → $326/month, ~$9,098 total interest.
Last updated: March 2026
How this calculator is verified
Checked by True Calculator automated test suite on
- Formula verified against a published worked example in the automated test suite
- Edge cases (zero, negative, boundary and unit-mismatch inputs) covered by unit tests
The full verification method is on our how we verify page. Found an error? Tell us and we will re-check it.
When to Use This Calculator
Education loans finance some of the most expensive decisions Indian families make — engineering and MBA degrees, medical studies and study-abroad programs — and this calculator shows the repayment reality before you sign. Enter the loan balance, including any interest your bank capitalised during the course and moratorium, with the quoted rate and the repayment term, to see the monthly payment and total interest. It is the planning tool for parents estimating the EMI their child's degree will create, and for graduates who want to compare a 5-year and a 10-year repayment stretch — the shorter term raises the EMI but can cut total interest by a large margin. Remember that education loan interest qualifies for deduction under Section 80E.
How to Use This Calculator
- Step 1: Enter the total loan balance, including any interest your bank capitalised during the course and moratorium.
- Step 2: Enter the interest rate your lender quoted for the education loan.
- Step 3: Set the repayment term in years — repayment stretches commonly run 5 to 15 years after the study period.
- Step 4: Read the monthly payment, payoff time and total interest, then re-run with a shorter term to compare.
Worked Example
An ₹8,00,000 education loan at 9.5% for 5 years — a typical repayment stretch for a private engineering or MBA degree — returns a monthly payment of about ₹16,801, a total payment of about ₹10,08,100 and total interest of about ₹2,08,100. If your bank capitalised interest during the course, add it to the balance before entering it, because the payment is computed on the balance you enter.
Tips and Common Mistakes
- •Tip 1: Public-sector banks generally offer education loans without collateral up to ₹7.5 lakh — above that, security is usually required.
- •Tip 2: Ask whether interest during the course is simple or compound; the difference is added to your balance and inflates every future EMI.
- •Tip 3: Interest paid on an education loan qualifies for deduction under Section 80E of the Income-tax Act for up to 8 years from the first repayment year.
- ✗Mistake 1: Entering only the course fee and forgetting capitalised interest, which understates the balance.
- ✗Mistake 2: Treating the EMI as fixed forever when the loan is on a floating rate — recalculate after every rate reset.
Frequently Asked Questions
How are student loan payments calculated?
The calculator amortises your balance over the chosen term at your interest rate. Enter your balance, rate and term to see the monthly payment and total interest for the life of the loan.
Should I choose the standard or an income-driven plan?
The standard 10-year plan pays the least total interest but has higher monthly payments. Income-driven plans cap payments at a percentage of your income but extend the term, so total interest is higher.
Does student loan interest compound daily?
Federal student loans use simple daily interest — interest accrues daily on the principal but is not added to it while payments are current. Unpaid interest can capitalise after deferment or forbearance.
Is this student loan calculator free to use?
Yes, True Calculator's student loan calculator is completely free with no sign-up, no app install and no usage limits.
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