Using the Student Loan Calculator
Use the balance that will enter repayment. If interest has already been added to the principal, include it. Run separate estimates for loans with different rates rather than treating a simple average rate as exact.
Worked example
Use the example inputs below to reproduce this result. These are the form's starting values, not recommended targets. Changing your inputs updates your result above; this worked example stays fixed for comparison. Results are rounded for display.
Example inputs
- Amount borrowed
- 20000
- Annual interest rate (%)
- 6
- Term (months)
- 60
Example result
- Monthly payment
- 386.66
- Total payments
- 23,199.36
- Total interest
- 3,199.36
Method and assumptions
Fully amortizing loan with equal end-of-month payments, monthly interest and no fees, taxes, insurance or variable-rate changes. All amounts use the same currency.
Compare the whole borrowing commitment
When comparing loan scenarios, change one assumption at a time. First compare terms at the same rate and balance, then compare rates over the same term. This makes it easier to see why the monthly payment changes. Keep any upfront costs alongside the result so that a lower installment does not hide a more expensive agreement.
Common question
Does this include interest during school?
Only if that interest is already included in the amount you enter. The calculator begins with the balance supplied and models repayment from that point onward.
Guide updated .