Monthly Payment:
Total Interest:
Total Payment:
Enter the total loan amount in dollars.
Specify the loan term in years.
Enter the annual interest rate as a percentage.
Click to instantly calculate monthly payment, total interest paid, and total amount paid.
Shows the calculated monthly payment, total interest, and total payment amounts.
Student loans are a common way to finance higher education. Understanding the repayment terms, interest rates, and total costs is crucial for proper financial planning. This calculator provides key insights into the overall burden of student loans by calculating monthly payments based on the loan amount, term length, and interest rate.
Some authoritative sources on student loans and repayment:
- Federal Student Aid (U.S. Department of Education): https://studentaid.gov/
- Consumer Financial Protection Bureau: https://www.consumerfinance.gov/student-loans/
- FinAid (National Association of Student Financial Aid Administrators): https://finaid.org/
The student loan calculator uses the following formula to determine the monthly payment amount:
Monthly Payment = [Loan Amount * (Interest Rate / 12)] / [1 - (1 + Interest Rate / 12)^(-Number of Payments)]
Where:
- Loan Amount is the total principal borrowed
- Interest Rate is the annual interest rate converted to a decimal (e.g., 7% = 0.07)
- Number of Payments is the Loan Term in years multiplied by 12 (for monthly payments)
The total interest paid is calculated as:
Total Interest = (Monthly Payment * Number of Payments) - Loan Amount
And the total payment is simply:
Total Payment = Monthly Payment * Number of Payments