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Student Loan Payoff Calculator: Extra Payments Can Save You Money
Use this student loan payoff calculator to see how extra payments can pay off student debt faster and cheaper.
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NerdWallet's content is fact-checked for accuracy, timeliness and relevance. It undergoes a thorough review process involving writers and editors to ensure the information is as clear and complete as possible.
Anna Helhoski is a senior writer covering economic news and trends in consumer finance at NerdWallet. She cohosts and produces Money News segments of NerdWallet's Smart Money podcast. She is also an authority on student loans. She joined NerdWallet in 2014. Her work has been syndicated in news outlets nationwide including The Associated Press, The New York Times, The Washington Post and USA Today. She previously covered local news in the New York metro area for the Daily Voice and New York state politics for The Legislative Gazette. She holds a bachelor's degree in journalism from Purchase College, State University of New York.
Karen Gaudette Brewer leads the Core Personal Finance team at NerdWallet. Previously, she guided students and their families through the ins and outs of paying for college and managing student debt on the Higher Education team. Helping people navigate complex money decisions and feel more confident brings her great joy: as the daughter of an immigrant, from an early age she was the translator of financial documents and the person who called the credit card company to fix fraud.
She joined NerdWallet with 20 years of experience working in newsrooms and leading editorial teams, most recently as executive editor of HealthCentral. She launched her journalism career with The Associated Press and later worked for The (Riverside) Press-Enterprise, The Seattle Times, PCC Community Markets and Allrecipes.com.
She is a graduate of the 2022 Poynter Institute Leadership Academy for Women in Media. Her writing has been honored by the Society for Features Journalism and the Society of Professional Journalists. In addition, she’s the author of two books about the Pacific Northwest.
Head of Content, Core Personal Finance
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.
NerdWallet ratingNerdWallet's ratings are determined by our editorial team. The scoring formula for student loan products takes into account more than 50 data points across multiple categories, including repayment options, customer service, lender transparency, loan eligibility and underwriting criteria.
Credible lets you check with multiple student loan lenders to get rates with no impact to your credit score. Visit their website to take the next steps.
NerdWallet ratingNerdWallet's ratings are determined by our editorial team. The scoring formula for student loan products takes into account more than 50 data points across multiple categories, including repayment options, customer service, lender transparency, loan eligibility and underwriting criteria.
Fixed APR
3.95-10.49%
Actual rate will vary based on your financial profile. Fixed annual percentage rates (APR) range from 4.60% APR to 10.74% APR (4.35% - 10.49% with .25% auto pay discount). Variable annual percentage rates (APR) range from 6.13% APR to 10.74% APR (5.88% - 10.49% with .25% auto pay discount). Earnest variable interest rate student loan refinance loans are based on a publicly available index, the 30-day Average Secured Overnight Financing Rate (SOFR) published by the Federal Reserve Bank of New York. The variable rate is based on the rate published on the 25th day, or the next business day, of the preceding calendar month, rounded to the nearest hundredth of a percent. The rate will not increase more than once a month, but there is no limit on the amount that the rate could increase at one time. Please note, we are not able to offer variable rate loans in AK, IL, MN, NH, OH, TN, and TX. Our lowest rates are only available for our most credit qualified borrowers and require selection of our shortest term offered (5 years) and enrollment in our .25% auto pay discount from a checking or savings account. Enrolling in autopay is not required as a condition for approval.
Variable APR
5.88-10.49%
Actual rate will vary based on your financial profile. Fixed annual percentage rates (APR) range from 4.60% APR to 10.74% APR (4.35% - 10.49% with .25% auto pay discount). Variable annual percentage rates (APR) range from 6.13% APR to 10.74% APR (5.88% - 10.49% with .25% auto pay discount). Earnest variable interest rate student loan refinance loans are based on a publicly available index, the 30-day Average Secured Overnight Financing Rate (SOFR) published by the Federal Reserve Bank of New York. The variable rate is based on the rate published on the 25th day, or the next business day, of the preceding calendar month, rounded to the nearest hundredth of a percent. The rate will not increase more than once a month, but there is no limit on the amount that the rate could increase at one time. Please note, we are not able to offer variable rate loans in AK, IL, MN, NH, OH, TN, and TX. Our lowest rates are only available for our most credit qualified borrowers and require selection of our shortest term offered (5 years) and enrollment in our .25% auto pay discount from a checking or savings account. Enrolling in autopay is not required as a condition for approval.
Credible lets you check with multiple student loan lenders to get rates with no impact to your credit score. Visit their website to take the next steps.
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.
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.
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.
The standard repayment plan takes 10 years to pay off a student loan. But repayment can last longer if you change your repayment plan — for example, income-driven options can last up to 25 years.
How quickly can I pay off my student loan?
You can pay off a student loan as quickly as you're financially able to. There's typically no penalty for prepaying a student loan, and paying off your loan quickly will result in paying less overall.
When will my student loan be paid off?
You can calculate your payoff date using a student loan payoff calculator. You'll need your current loan balance, the loan's interest rate and the amount you pay each month. If you're on an income-driven repayment plan, your student loan will be paid off when the amount you owe is paid in full or your repayment term reaches its end, whichever happens first.
How long will it take to pay off my student loan?
The standard repayment plan takes 10 years to pay off a student loan. But repayment can last longer if you change your repayment plan — for example, income-driven options can last up to 25 years.
How quickly can I pay off my student loan?
You can pay off a student loan as quickly as you're financially able to. There's typically no penalty for prepaying a student loan, and paying off your loan quickly will result in paying less overall.
When will my student loan be paid off?
You can calculate your payoff date using a student loan payoff calculator. You'll need your current loan balance, the loan's interest rate and the amount you pay each month. If you're on an income-driven repayment plan, your student loan will be paid off when the amount you owe is paid in full or your repayment term reaches its end, whichever happens first.
