calculate-loan

07 Student loans

Student Loan Payment Calculator: Standard Monthly Payment

Calculator No. 07-0028 · Updated · Formula and assumptions shown below

Monthly payment $388.57
Total interest
$11,628.40
= Monthly payment × repayment term × 12 − loan balance
Total paid
$46,628.40
= Monthly payment × repayment term × 12
Loan balance
$35,000
Input
You enter
Loan balance ($), Interest rate (%), Repayment term (years)
You get
Monthly payment ($), Total interest ($), Total paid ($)
Rounding
2 dp

Estimate for education, not financial advice. The result follows from the numbers you enter and the formula shown. It is not a quote or an offer, and it does not include fees, taxes or insurance unless the calculator asks for them. Ask your lender for the exact figures.

This calculator works out the level monthly payment on a student loan, the way a standard fixed repayment plan spreads the balance over a term such as 10 years. Enter the balance, the interest rate and the term; you get the payment, the total interest and the total paid.

Formula

M = P × r ÷ (1 − (1 + r)−n), where r = APR ÷ 12 ÷ 100 is the monthly rate and n the number of monthly payments.

B is the balance when repayment starts. Total paid = M × n; total interest = M × n − B.

Worked Example

A $35,000 balance at 6% repaid over 10 years.

  1. r = 0.005, n = 120
  2. M = 35,000 × 0.005 ÷ (1 − 1.005−120) = $388.57
  3. Total paid = 388.57 × 120 = $46,628.40; total interest = $11,628.40

Assumptions

  • The payment is rounded to the cent and totals use the rounded payment; a lender’s final payment can differ by a few cents.
  • Fixed interest rate for the whole term; payments of equal size at the end of each month.
  • Interest compounds monthly at APR ÷ 12.
  • No fees, taxes or insurance unless the calculator has a field for them.
  • Income-driven plans, forgiveness, subsidies and deferment are not modelled.
  • If you have several loans at different rates, run each one or use a weighted average rate as an estimate.

How to read the result

This is the payment of a plain level repayment. Your servicer can show the plans that apply to your loans and their payments.

Limits and common mistakes

  • Use the balance when repayment starts, including any interest that has been added to it.
  • A longer term lowers the payment but increases the total interest.

Frequently Asked Questions

What is the payment on $35,000 at 6% over 10 years?

About $388.57 a month, with about $11,628 of interest.

Does this include income-driven repayment?

No. Those plans depend on rules and your income, which this calculator does not model.

Can I see the effect of paying extra?

Yes, with the extra payment calculator.

Formula used
in b | Loan balance | $ | 35000 | 1 | 10000000
in apr | Interest rate | % | 6 | 0.01 | 100
in yrs | Repayment term | years | 10 | 1 | 30
out pmt | Monthly payment | $ | round(b * (apr / 1200) / (1 - (1 + apr / 1200) ^ -(yrs * 12)), 2) | 2
out int | Total interest | $ | pmt * yrs * 12 - b | 2
out tot | Total paid | $ | pmt * yrs * 12 | 2

Each line is one input (in, sel, list) or one result (out: label, unit, formula, decimals). How the calculators work

Photo collage: a student desk with plain textbooks and a desk lamp, and a close-up of a graduation cap tassel.
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Method: the standard loan formula for this calculation, fixed rate and monthly compounding unless stated, rounded as each result states. Not financial advice; no lender, rate or product is recommended. See formulas and assumptions, the disclaimer or report an error.

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