Student Loan Repayment Plan Calculator — Compare Options
Compare standard, graduated, income-driven, and PSLF student loan repayment plans side by side before you choose.
Reviewed by Daniel Agrici, Founder & Lead Developer
Formula
M = P[r(1+r)^n] / [(1+r)^n - 1]
Where M = monthly payment, P = principal loan balance, r = monthly interest rate (annual rate / 12), and n = total number of monthly payments. For income-driven plans, the payment is instead calculated as a percentage of discretionary income: IBR Payment = (AGI - 150% x Poverty Line) x 10% / 12.
Worked Examples
Example 1: Standard 10-Year Repayment
Problem:A graduate has $35,000 in federal student loans at 5.5% interest on the standard 10-year repayment plan. What are the monthly payments and total cost?
Solution:Monthly rate: 5.5% / 12 = 0.4583%\nTotal payments: 10 x 12 = 120\nMonthly payment: $35,000 x (0.004583 x 1.004583^120) / (1.004583^120 - 1)\n= $35,000 x (0.004583 x 1.7285) / (1.7285 - 1)\n= $35,000 x 0.007922 / 0.7285\n= $35,000 x 0.010874 = $380.59\nTotal paid: $380.59 x 120 = $45,670.80\nTotal interest: $45,670.80 - $35,000 = $10,670.80
Result:$380.59/month | $45,671 total paid | $10,671 in interest
Example 2: Extra Payments vs Income-Driven
Problem:Same $35,000 loan at 5.5%. Compare adding $150/month extra payments vs IBR with $55,000 annual income.
Solution:Extra payments: $380.59 + $150 = $530.59/month\nPayoff in ~76 months (6.3 years) instead of 120\nTotal interest saved: ~$3,900\n\nIBR at $55,000 income:\nDiscretionary = $55,000 - (1.5 x $15,060) = $32,410\nIBR payment = ($32,410 x 0.10) / 12 = $270.08/month\n20-year term with remaining balance forgiven
Result:Extra payments: Save $3,900 interest, done in 6.3 years | IBR: $270/month but 20-year term
Frequently Asked Questions
What are the main student loan repayment plan options?
Federal student loans offer several repayment plans. The Standard Repayment Plan has fixed monthly payments over 10 years, resulting in the least total interest paid. The Graduated Repayment Plan starts with lower payments that increase every two years over 10 years, designed for borrowers expecting income growth. Extended Repayment stretches payments over 25 years with lower monthly amounts but significantly more total interest. Income-Driven Repayment plans like IBR, PAYE, and REPAYE base payments on 10 to 20 percent of discretionary income and forgive remaining balances after 20 to 25 years. Public Service Loan Forgiveness offers forgiveness after just 120 qualifying payments for eligible public sector workers.
How does income-driven repayment work and who qualifies?
Income-driven repayment plans calculate your monthly payment based on your discretionary income, which is the difference between your adjusted gross income and 150 percent of the federal poverty guideline for your family size and state. Under the SAVE plan (which replaced REPAYE), payments are 5 to 10 percent of discretionary income. IBR caps payments at 10 to 15 percent of discretionary income. These plans recalculate annually when you recertify your income. After 20 to 25 years of qualifying payments, any remaining balance is forgiven. The forgiven amount may be considered taxable income under current tax law, though recent legislation has provided temporary exemptions. Most federal loan borrowers qualify for at least one income-driven plan.
What is Public Service Loan Forgiveness and how do I qualify?
Public Service Loan Forgiveness forgives the remaining balance on Direct Loans after you make 120 qualifying monthly payments while working full-time for an eligible public service employer. Qualifying employers include government organizations at any level, 501(c)(3) nonprofits, and certain other nonprofit organizations. You must be enrolled in an income-driven repayment plan, and payments made under the standard 10-year plan also count. The 120 payments do not need to be consecutive. Unlike income-driven forgiveness, PSLF-forgiven amounts are not subject to federal income tax. The program has faced criticism for historically high rejection rates, but recent reforms have significantly improved approval rates and the application process.
Should I make extra payments on my student loans?
Making extra payments can save significant money on interest and help you become debt-free years sooner. On a $35,000 loan at 5.5 percent over 10 years, adding just $100 per month saves roughly $2,800 in interest and pays off the loan nearly 2.5 years early. However, extra payments make more sense for some borrowers than others. If you are pursuing PSLF or income-driven forgiveness, extra payments reduce the amount that would eventually be forgiven, potentially costing you money. If you have higher-interest debt like credit cards, pay those first. If your employer offers a 401(k) match, capturing that match typically provides a better return than prepaying a low-interest student loan.
References
Reviewed by Daniel Agrici, Founder & Lead Developer · Editorial policy