Calculate your student loan payment, including interest that accrues and capitalizes during a deferment or grace period.
Rates as of Q2 2025 (example)
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A student loan calculator estimates your monthly payment, total interest, and full repayment schedule for a student loan — including the effect of a grace period during which interest accrues (and may be added to your principal balance, called "capitalization") before regular repayment begins. This helps you see the true cost of a student loan, not just the payment you'll make once repayment starts.
This calculator first applies interest accrual during the grace period to your original loan amount — if that interest capitalizes (is added to principal), your repayment balance starts higher than your original loan amount. The standard loan amortization formula is then applied to that capitalized balance over your repayment term.
Formula: Balance at Repayment = Original Loan Amount × (1 + monthly rate)grace period months. Monthly Payment = [P × r(1+r)n] / [(1+r)n − 1], where P is the balance at repayment, r is the monthly rate, and n is the repayment term in months.
Example: A $30,000 loan at a 6% interest rate (example rate — enter your actual rate) with a 6-month grace period accrues roughly $900 in interest during the grace period — if capitalized, your repayment balance becomes roughly $30,900, and over a 10-year term, the monthly payment would be calculated on that higher balance. (Note: all figures in this example are for illustration purposes only and do not represent your actual loan terms.)
US student loans fall broadly into federal loans (with standardized rates set by the government each year, and options like income-driven repayment plans, deferment, and forbearance) and private loans (issued by banks or other lenders, with rates and terms varying by lender and creditworthiness). Rates as of Q2 2025 (example) varied significantly between federal loan types and private lenders. Grace periods — commonly around 6 months after graduation for many federal loans (example — verify your specific loan's grace period) — allow time before repayment begins, but interest typically continues to accrue during this time and may be added to (capitalized into) your principal balance, increasing the amount you'll pay interest on going forward.
Capitalization is when unpaid accrued interest is added to your loan's principal balance, meaning future interest is calculated on a higher amount. This commonly happens at the end of a grace period, deferment, or forbearance for unsubsidized loans.
For subsidized federal loans, the government may pay the interest that accrues during certain periods (like in-school enrollment and the grace period), so the balance doesn't grow. For unsubsidized loans, interest accrues from disbursement and is the borrower's responsibility, potentially capitalizing if unpaid.
No — the default is an example only. Student loan interest rates vary by loan type (federal vs. private), origination year, and for private loans, your creditworthiness. Check your loan documents or servicer account for your actual rate.
No. This calculator models standard fixed-payment amortization. Federal income-driven repayment plans base your monthly payment on your income and family size rather than a fixed amortization schedule — check with your loan servicer for those calculations.
Making interest payments during your grace period, deferment, or forbearance — even if not required — can prevent that interest from capitalizing into your principal balance, reducing your total cost over the life of the loan.
An extra monthly payment during repayment reduces your principal balance faster, which reduces future interest charges — potentially shortening your repayment term and reducing total interest paid, as shown in the "time saved" and "interest saved" results when you enter an extra payment.
Disclaimer: The information, rates, and figures provided on this page are for educational and illustrative purposes only. All rates and examples shown are sample values and do not reflect your actual loan terms, which depend on your specific loan type, lender, and origination date. Student loan rules and rates change periodically. Always consult your loan servicer or a qualified financial advisor before making any financial decisions.