Student Loan Payoff Calculator
Standard student loan payment, payoff date and interest with extra monthly payments or a lump sum, plus a refinance offer compared with and without the same overpayments — any currency.
| Standard schedule | — |
|---|---|
| With extra payments / lump sum | — |
| Interest saved | — |
| Refinance offer | — |
| Refinance + same extra payments | — |
| Daily interest right now | — |
| Payment as % of a salary | — |
In short
Extra payments go straight to principal: 38,000 at 6.8% over 10 years costs 437 a month and 14,480 interest; 100 extra a month clears it in 7 years 7 months and saves about 3,780. Refinancing to 5.2% saves a similar amount but, for US federal loans, forfeits income-driven repayment and forgiveness; UK income-contingent loans are a different system.
Who this is for: Graduates planning extra payments, a lump sum or a private refinance.
Paying off student loans faster
- Extra payments: tell the servicer to apply them to principal, not to advance the due date. 100 a month on a 38,000 loan at 6.8% removes almost two and a half years.
- Lump sums: a bonus or tax refund applied now saves the interest it would have accrued for the rest of the term — the calculator treats it as paid today.
- Highest rate first if you have several loans (avalanche); the debt payoff calculator handles multiple balances.
- Refinancing can cut the rate for good-credit borrowers, but US federal loans lose income-driven plans, forgiveness and hardship deferment once refinanced privately — only refinance federal loans if you are sure you will never need those.
- Autopay discounts (often 0.25%) and employer repayment benefits are free money — enter the discounted rate.
See also: UK Student Loan Repayment Calculator.
Assumptions
- Standard payment from the amortising formula; extra payments and a lump sum reduce principal immediately.
- Refinance: new amortising loan on balance + fee at the new rate and term, with and without the same extras.
- Daily interest = balance × rate ÷ 365.
Worked example
Standard payment 437; 10 years and about 14,480 interest. With 100 extra: paid off in 7 years 7 months with about 10,700 interest — saves 3,780. Refinancing to 5.2% drops the payment to 407 and interest to 10,810 (saves 3,660); refinancing and paying the same 100 extra clears it in 7 years 7 months with about 8,050 interest.
Frequently asked questions
Should I pay off student loans early or invest?
Compare the loan rate with a realistic after-tax return: at 6–7% the guaranteed saving from overpaying is hard to beat; at 3–4% investing (and capturing any employer pension match first) usually wins.
Does refinancing student loans hurt my credit?
A hard enquiry costs a few points briefly; the new loan then builds history. The bigger issue for US federal loans is losing income-driven repayment and forgiveness.
How is student loan interest calculated?
Daily on the outstanding principal for most private and US federal loans — the daily figure shown is balance × rate ÷ 365.
What about UK student loans?
They are repaid as a percentage of income above a threshold and written off after 30–40 years, so the question is different — use the UK student loan repayment calculator.
Will extra payments lower my monthly payment?
Not automatically — most servicers keep the payment and shorten the term; ask for them to be applied to principal, not advanced to future months.
Is it worth refinancing a 6.8% student loan to 5.2%?
On 38,000 over 10 years it saves about 3,700, but only refinance federal loans if you will not need income-driven repayment or forgiveness.
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