Student Loan Payoff Calculator
Enter your loan balance, interest rate, and monthly payment to see your payoff timeline. Bump up the extra payment slider to watch months and interest melt away — then try a refinance rate to see a side-by-side comparison.
Months to freedom
7y 1m
1y 4m sooner than without extra payments
Total interest
$6.7k
Interest saved
$1.4k
Balance over time
Amortization schedule (yearly)
| Year | Interest | Principal | Balance |
|---|---|---|---|
| 1 | $130.71 | $269.29 | $23,862.63 |
| 2 | $112.68 | $287.32 | $20,515.14 |
| 3 | $93.44 | $306.56 | $16,943.46 |
| 4 | $72.91 | $327.09 | $13,132.58 |
| 5 | $51.00 | $349.00 | $9,066.48 |
| 6 | $27.63 | $372.37 | $4,728.07 |
| 7 | $2.69 | $397.31 | $99.10 |
| 8 | $0.54 | $99.10 | $0.00 |
How it works
Each month, interest accrues on the remaining balance (balance × annual rate ÷ 12). Your payment covers that interest first; everything left reduces the principal. Because every dollar paid early shrinks the base for future interest, even a modest extra payment compounds into large savings over the life of the loan.
The extra-payment lever runs a second simulation using your base payment plus the extra amount. The difference in payoff months and total interest shows the precise value of accelerating repayment — no guesswork, just arithmetic applied to your actual balance.
The refinance comparison reruns the simulation at the new rate but with the same monthly payment. A lower rate means more of each dollar hits the principal, shrinking both the term and total interest. Important caveat: refinancing federal loans with a private lender forfeits federal protections such as income-driven repayment plans, loan forgiveness programmes, and deferment options. Weigh those protections against the interest savings before deciding.
Frequently asked questions
Should I refinance my federal student loans?+
Refinancing can lower your interest rate and reduce total interest paid, but refinancing federal loans with a private lender permanently converts them to private loans. You lose access to income-driven repayment plans, Public Service Loan Forgiveness, deferment, and forbearance options. This calculator shows the financial math; only you can weigh that against the protections you'd give up. This is not financial advice — consult a qualified adviser before refinancing federal loans.
Should I pay off my student loans or build an emergency fund?+
A common rule of thumb is to build 3–6 months of expenses in savings first, then tackle high-rate debt using the avalanche method (highest rate first). If your loan rate is lower than what a savings account or index fund reliably earns after tax, the math can favour investing instead. Compare the guaranteed, tax-equivalent return of paying off debt against your realistic after-tax investment return — then decide based on your own risk tolerance.
Do extra payments automatically go toward the principal?+
Not always. Federal and most private servicers apply extra amounts to the next month's scheduled payment by default — which delays, rather than accelerates, your payoff. To make extra payments count, contact your servicer and request that any overpayment be applied to the principal balance immediately. Get that instruction in writing or confirm it in your online account settings each time.