Student Loan Payoff Calculator: Extra Payments Can Save You Money

Making extra or larger monthly payments toward your student loans can help you pay off the debt faster and save money in the process. Use our payoff calculator to see how much sooner you'll be be debt-free with extra payments. The amortization schedule shows the total interest cost.

Student loan payoff calculator

Why use a student loan payoff calculator

The higher your extra payments — and the more you put toward your principal balance — the less interest you’ll pay.

For example, if you borrow $20,000 in student loans with an interest rate of 5%, then your monthly payment on a standard 10-year term would be $212. By the end of the loan, you'll have paid $5,456 in interest.

But if you paid an extra $100 a month toward that loan, you can pay it off nearly four years sooner and save $2,000 in interest.

How to pay off student loans faster

Here are three ways to pay off your student loans faster.

1. Apply extra student loan payments toward the principal

You may need to contact your lender or servicer and ask them to apply your extra payments toward the principal rather than next month’s interest payment. Your lender may have a specific way to make the request:

• In writing. Some lenders require a written request for extra payments to go toward the principal.

• On the phone. If you make a payment by phone, you may need to ask verbally.

• On your check. If you send a check by mail, add “apply to principal” to the memo line.

» MORE: How to pay off student loans fast

2. Make larger, one-time payments

If you can’t make an extra student loan payment every month, look for opportunities throughout the year to increase your payment or make larger, one-time payments. Here are a few events to consider:

• Windfall money. Windfall money can come in the form of a gift, job bonus, legal settlement or inheritance. 

• Tax refund. When you file your tax return each year, you might get a federal or state tax refund.

• Pay raises. If you get a raise, you can apply the additional money each paycheck toward your student loans.

» MORE: Lump-sum student loan repayment calculator

3. Enroll in autopay or make bi-weekly payments

If you have a federal student loan, you’ll get a 0.25% reduced interest rate for enrolling in autopay. This means your monthly student loan payment will automatically be debited from your bank account. Many private lenders also offer an autopay discount that may help lower your interest rate.

In addition to autopay discounts, you can also expedite student loan payoff by making more than one payment per month. Bi-weekly payments take your full monthly payment and divide it into two payments per month. By the end of the year, you’ll have made an extra payment using this method. It's a simple way to trick yourself into making one full extra payment each year.

Trade-offs to extra student loan payments

Paying off your student loans faster can lift a huge burden, but also look at your overall finances to make sure you're not skimping on higher priorities. Higher-interest debt, like credit card debt, will cost more in the long run. You may want to prioritize extra payments toward this debt before aggressively tackling your student loans.

Similarly, if you haven't been able to build an emergency fund or your retirement savings, allocate money to these before your student loans.

» MORE: Should I pay off student loans early?