Student loan interest calculator
Answer three questions to learn what interest your student loan adds month by month and over the full term.
- Simple. Federal loans charge simple interest, and interest is never charged on interest
- Daily. interest grows every day based on the balance you owe right now
- 1%discount on your rate for auto debit (it was 0.25%), until June 30, 2028
- Covered. under RAP, any interest your full, on-time payment doesn't reach is covered
How much extra do common loans add in interest?
| Balance and rate | Interest in month one | Interest over 10 years | 10-year payment |
|---|---|---|---|
| $10,000 at 5.5% | $46 | $3,023 | $109 |
| $10,000 at 6.5% | $54 | $3,626 | $114 |
| $10,000 at 8% | $67 | $4,559 | $121 |
| $35,000 at 5.5% | $160 | $10,581 | $380 |
| $35,000 at 6.5% | $190 | $12,690 | $397 |
| $35,000 at 8% | $233 | $15,958 | $425 |
| $70,000 at 5.5% | $321 | $21,162 | $760 |
| $70,000 at 6.5% | $379 | $25,380 | $795 |
| $70,000 at 8% | $467 | $31,915 | $849 |
How the numbers are worked out
Show how it's worked out
Monthly interest equals your balance times your rate, all divided by 12. With a 6% rate on $10,000, that's $50 each month.
To get the total, we spread your loan across the years you choose using one fixed payment, the same way the Standard Plan works. At first, most of each payment covers interest. As your balance drops, a bigger part of each payment goes toward what you still owe. The total comes from adding up every payment and subtracting what you borrowed.
RAP works in a different way. The total shown here won't match what you pay, because your payment follows your income. When a complete, on-time RAP payment leaves part of the month's interest uncovered, the remainder is covered and your balance doesn't grow. Your RAP bill appears in the RAP plan calculator.
Sources: Federal Student Aid, Standard Plan, Federal Student Aid, RAP definitions.
What people ask
How is interest on student loans calculated?
Take your balance, multiply it by your rate, then divide by 12. That gives you the interest for one month. Federal loans charge simple interest, so no interest gets added on top of interest.
What does a $70,000 student loan add in interest each month?
At 6%, that's about $350 a month to start. That amount drops as you pay down the balance.
Do extra payments reduce my student loan interest?
Yes. Extra money reduces your balance, so next month's interest comes out smaller.
Do student loans charge compound interest?
Federal ones don't. They charge simple interest, so unpaid interest doesn't get charged interest of its own. With RAP, interest left unpaid by your on-time payment is waived.
How do I figure out daily interest on a student loan?
Divide your yearly rate by how many days the year has. Then multiply it by your balance. For the monthly number, the calculator spreads the yearly rate across 12 months instead.
Different ways to check your loan
Check your payment, or how quickly extra money pays it off.