Free Student Loan Calculator – Estimate Payments

A Student Loan Calculator can be used to find out how much you will need to pay each month on your education loan. You can also find out how much interest you’ll pay in total and how much you’ll pay in total. This makes planning your loan easy so you can see how much you might have to pay each month if you take out a certain amount to pay for your tuition, accomodation, books and other education related costs.

Student loans are often taken out to pay for undergraduate and postgraduate courses, professional courses and overseas study. Some lenders will require you to start paying back your loan while you are studying, while others will give you a grace period after you graduate. Some loans will also require you to pay interest while you’re studying.

By using a Student Loan Calculator you can insert the loan amount, interest rate and repayment term to find out how much you’ll need to pay each month. You can also compare different loan amounts, interest rates and repayment terms to see how they affect the amount you’ll have to pay.

Whether you’re going to a local university or studying abroad this calculator can help you to make informed decisions about how much you want to borrow. It can help you understand how much you’ll need to pay for your education, how much you’ll need to budget for paying back your loan and how much it will actually cost in the long run.

This calculator will give you an estimate. The actual amount you’ll pay will depend on your lenders terms, any fees involved, how the interest is calculated and how you’ll pay it back.

How to use the Student Loan Calculator

To use the Student Loan Calculator follow these steps:

Insert the loan amount. Insert how much you will be borrowing for your tuition, accomodation, books and any other education related costs.

Insert annual interest rate. Insert what interest rate your lender is offering.

Select repayment term. Insert how many years or months you plan to pay back your loan.

Insert extra details. If the calculator allows you can insert any fees, initial payment or interest while studying.

Click calculate. This will calculate how much you’ll need to pay each month.

Check your results. You can check how much you’ll pay each month, how much interest in total and how much you’ll pay in total.

For example if you take out a loan of ₹10,00,000 at an interest rate of 8% and pay it back over 10 years this will calculate how much you’ll pay each month.

You can also try changing the interest rate or repayment term. The longer your repayment term is the less you’ll pay each month, however you’ll pay more interest in total.

Student Loan Calculator Formula

A typical Student Loan Calculator uses a fixed payment loan formula. This is the formula:

M = [P x r(1 + r)ⁿ]/[(1 + r)ⁿ - 1]

Where,

M = Monthly loan payment

P = Principal loan amount

r = Monthly interest rate (annual nominal interest rate divided by 12)

n = Total number of payments

For example if the interest rate was 8% this would be 0.006667 (0.6667%).

This formula calculates how much you’ll need to pay each month to pay off your loan if it has a fixed interest rate and you pay the same amount each month.

Total Interest and Total Payment

Once you’ve calculated your monthly payment you can calculate how much you’ll pay in total. This can be calculated using the formulas:

Total Repayment = M x n

Total Interest = Total Repayment - P

This assumes that you’ll start paying back your loan straight away, there will be no change to your interest rate and no extra fees.

If you’re paying interest while you’re studying then you may have a larger amount to pay back. This should use the amount you have at the start of paying back.

Example Calculation

A student takes out an education loan with the following details:

Loan Detail Value

Loan Amount ₹10,00,000

Annual Interest Rate 8%

Repayment Term 10 Years

Total Number of Monthly Payments 120

Convert your annual interest rate:

r = 8% / 12 = 0.006667

Calculate the total number of monthly payments:

n=10 x 12 = 120

Calculate how much you’ll pay using a typical monthly payment formula:

M ≈ ₹12,133

Total Repayment over 120 months:

₹12,133 x 120 ≈ ₹14,55,960

Total Interest:

₹14,55,960 - ₹10,00,000 = ₹4,55,960

The student would pay approximately ₹12,133 each month. In total they would pay ₹14.56 Lakh which includes approximately ₹4.56 Lakh in interest.

This is a rough calculation and rounded numbers have been used. The actual amount may vary slightly due to rounding, how the lender calculates the loan, any fees and change in interest rate.

What your result means

A Student Loan Calculator typically shows 3 key pieces of information.

Monthly Payment

This is how much you’ll pay each month. This can help you decide if the loan is manageable with your expected income.

Total Interest

This is how much it will cost you to borrow the money. The higher the interest rate and repayment term the more interest you’ll pay in total.

Total Repayment

This is how much you’ll pay in total. This is how much you’ll pay in principal and interest over the course of your loan. This does not include any extra fees.

This can help you compare different loan offers.

A shorter repayment term will mean you pay more each month but less in total. A longer repayment term will make your payments more affordable but you may pay more in total.

When looking at your result think about your expected salary, essential living costs, emergency savings and any other debts. The lower the monthly payment the less economical it may be in the long run.

Factors affecting your result

There are several factors that could affect your payment.

Loan Amount – The higher the loan amount the higher your monthly payment and total interest.

Interest Rate – The higher the interest rate the more it will cost to borrow. Even a small difference in interest rate can make a big difference to your total interest if you have a long repayment term.

Repayment Term – A longer repayment term will typically mean you pay less each month but more in total. A shorter repayment term will typically have the opposite effect.

Interest While Studying – Some loans will charge interest while you are studying. If the interest is added to your principal then you may have a higher amount to pay back.

Fixed or Variable interest rate – A fixed interest rate will typically stay the same over the agreed term. A variable interest rate can change depending on the loan and lender.

Grace Period/Deferment – Some lenders will let you start paying back your loan after you graduate. They may also give you a grace period. Interest may still be charged during this time.

Fees – There may be fees to process your loan. This can increase the cost of borrowing.

Extra Payments – If you make extra payments towards your principal this could reduce the amount you owe and therefore the amount of interest.

Understanding these factors can help you compare education loans and choose a repayment term that works best for you.

Benefits and Uses

Using a Student Loan Calculator can benefit you in many ways.

Plan your education costs – Find out how much you’ll need to pay for your tuition, accomodation, books and other education related costs.

Create a budget for paying back – Know roughly how much you’ll need to pay each month.

Compare offers – See how much you’ll pay in total depending on the interest rate and repayment term.

See how much interest you’ll pay – See how much you may pay in total.

Decide how much you need – Decide if you need to borrow the full amount or if you can save, get a scholarship/grant to reduce the amount you borrow.

Plan for after graduation – Find out how much you’ll pay in the future compared to your expected income and living costs.

Compare repayment terms – See how much you may pay if you have a shorter term or make extra payments towards your principal.

Help you and your family plan – This can help you and your family talk about how you’re going to fund your education.

If you’re planning to study abroad this can help you with initial budgeting. You should also consider exchange rates, international fees and loan terms depending on the country.

Accuracy and Assumptions

This calculator can give you a helpful estimate. However this depends on the information you put in.

The typical formula assumes a fixed interest rate, fixed monthly payments and a fixed repayment term. It also assumes the loan will be amortised. It generally assumes you’ll start paying back the amount you put in and there will be no extra charges or changes to the amount.

Your actual education loan may not be the same. Some lenders will let you pay interest only, give you a grace period, subsidise your interest or have a variable interest rate. Some loans will charge daily interest or have special repayment terms.

If you’re paying interest before making regular payments you may have a larger amount to pay back. A basic calculator will not take this into consideration so you may not get an accurate figure.

This calculator may not take into consideration processing fees, late payment fees, insurance, repayment holidays or other charges. If your interest rate changes or you make extra payments the actual repayment may differ.

Unless the calculator allows you to add them in there won’t be any tax benefits, government help, loan forgiveness or eligibilty terms. This depends on the rules and your situation.

Use this as a guide to help you plan. Before taking out an education loan check the lenders actual offer, how they calculate the interest, repayment schedule, any fees and terms.

FAQs

What is a Student Loan Calculator?

A Student Loan Calculator is an online tool which can help you calculate how much you’ll pay each month on your education loan, how much interest you’ll pay in total and how much you’ll pay in total. This is done based on the loan amount, interest rate and repayment term.

How do I calculate how much I’ll pay each month?

Insert the principal amount, annual interest rate and repayment term into the calculator. A typical fixed payment calculator will calculate your monthly payment using a loan amortisation formula.

Will a higher interest rate mean I pay more?

Yes, if the loan amount and repayment term are the same then a higher interest rate will typically mean you pay more each month and more in total.

Is a longer repayment term better?

A longer repayment term will typically mean you pay less each month so it may be easier to fit into your budget. However it will typically mean you pay more in total. The best repayment term depends on your income, expenses and goals.

Will I pay interest while I’m studying?

This depends on your lender and loan. Some loans will charge interest while you’re studying. Others may subsidise your interest or have different repayment terms. Check your loan terms.

Can I pay my loan back early?

Many lenders will allow you to pay back your loan early. This depends on your loan. Making extra payments may reduce the amount you owe and therefore the amount of interest. However there may be fees or restrictions.

Does the Student Loan Calculator take into consideration fees and taxes?

A basic Student Loan Calculator will typically just calculate your principal and interest. It may not take into consideration any processing fees, taxes, insurance or other charges. Check your lender\'s actual repayment schedule.