2021 NerdWallet Best-of Awards Winner for Best Student Loan Refinancing Overall
2021 NerdWallet Best-Of Awards Winner

Student Loan Interest Calculator

With our free Student Loan Interest Calculator, you can see how much interest you’ll pay on your student loans – both month-to-month and in total – whether you have one loan or several.

Enter Your Student Loan Information

Loan Balance
Your remaining student loan debt to be repaid.
Interest Rate
The amount that the lender charges in interest, expressed as a percentage.
Term
The length of time you have to repay your student loan debt in full.

Results

$127

Monthly Payment

$3,210

Lifetime Interest

Want a lower student loan rate and bigger savings? See which refinance rates you’re qualified for in just 2 minutes or less.

Our Picks for the Best Student Loan Refinancing Companies

Fixed Rate

2.74% – 7.99% APR

Term

5 -20 years

Minimum Credit Score

650

Variable Rate

1.74% – 7.99% APR

Eligible Loans

Federal & Private

Purefy Rating

Fixed Rate

2.74% – 7.99% APR

Term (years)

5-20

Minimum Credit Score

650

Variable Rate

1.74% – 7.99% APR

Eligible Loans

Federal & Private

Purefy Rating

Lightning-fast loan processing
Up to 12 months financial hardship deferment
Doesn’t offer cosigned loans

Fixed Rate

4.49% – 6.68% APR​

Term

5, 8, 12, or 15 years

Minimum Credit Score

670

Variable Rate

Not Offered

Eligible Loans

Federal & Private

Purefy Rating

Fixed Rate

4.49% – 6.68% APR​

Term (years)

5, 8, 12, or 15

Minimum Credit Score

670

Variable Rate

Not Offered

Eligible Loans

Federal & Private

Purefy Rating

Spouse couples can refinance together using combined income
Become a member of the credit union at no cost when you refinance
Temporary and permanent financial hardship assistance available

Fixed Rate

3.49% – 7.99% APR with autopay

Term

5, 7, 10, 15, 20 years

Minimum Credit Score

650

Variable Rate

1.74% – 7.99% APR with autopay

Eligible Loans

Federal & Private

Purefy Rating

Fixed Rate

3.49% – 7.99% APR with autopay

Term (years)

5, 7, 10, 15, 20 years

Minimum Credit Score

650

Variable Rate

1.74% – 7.99% APR with autopay

Eligible Loans

Federal & Private

Purefy Rating

Free career planning, job search, and entrepreneurship support
Forbearance options for financial hardship, natural disasters, and military service
98% of surveyed customers would recommend SoFi to a friend

Fixed Rate

2.73% – 5.99% APR

Term

5, 7, 10, 15, or 20 years

Minimum Credit Score

680

Variable Rate

1.86% – 6.01% APR

Eligible Loans

Federal & Private

Purefy Rating

Fixed Rate

2.73% – 5.99% APR

Term (years)

5, 7, 10, 15, or 20

Minimum Credit Score

680

Variable Rate

1.86% – 6.01% APR

Eligible Loans

Federal & Private

Purefy Rating

No maximum loan amount

Up to 12 months of forbearance if you experience financial hardship

Borrowers can refinance Parent PLUS loans in their own name

Fixed Rate

4.44% – 8.48% APR

Term

5, 7, 10, 15, or 20 years

Minimum Credit Score

670

Variable Rate

Not Offered

Eligible Loans

Federal & Private

Purefy Rating

Fixed Rate

4.44% – 8.48% APR

Term (years)

5, 7, 10, 15, or 20

Minimum Credit Score

670

Variable Rate

Not Offered

Eligible Loans

Federal & Private

Purefy Rating

Loans available in all states except Maine
Loan forgiveness if the borrower dies or becomes totally and permanently disabled
Options to postpone payments due to qualifying financial hardships

FAQs – Student Loan Interest Rate Calculator

Ready to learn how to calculate student loan interest? Use our handy student loan interest rate calculator and calculate your average interest rate on student loans.

Interest is calculated as simple daily interest for student loans. This generally means that each day, the outstanding principal balance is multiplied by the interest rate and divided by 365 days to calculate that day’s interest amount. For example, if you have a $10,000 loan and the interest rate is 7%, one day’s interest will be: ($10,000 x 0.07) / 365 = $1.92. This interest is then paid in each monthly bill.

Use our free calculator to learn how to calculate accrued interest on student loan, how to calculate interest paid on a student loan, and how to calculate your student loan interest.

Wondering how do you calculate student loan interest for private loans?

Interest is the amount of money paid regularly at a particular rate for the use of money borrowed from a student loan lender, or for delaying the repayment of a student loan debt. With a private loan, your lender that is setting your interest rate is either a bank, credit union, or other financial institution – not the federal government.

In essence, it’s the “extra” money you have to pay back the lender for the opportunity to use their money to go to college (or pay off your existing student loans by refinancing).

Student loan interest rates are calculated differently for federal and private student loans. Federal student loan interest rates are set annually by Congress, and they’re primarily based on the high yield of a U.S. Treasury note auctioned in May of each year.

Private student loan lenders, on the other hand, require a full credit check when you apply for a private student loan. Because these lenders function differently than the government, they provide a range of interest rates for all borrowers, based on creditworthiness. This arrangement is called risk-based pricing. When you apply for a private loan, the lender runs a credit check and uses your income information to determine whether there’s a risk that you’ll default on loan payments. The lower your credit score and income, the likelier it is that you’ll have a high interest rate.

How much you pay on student loans – regardless if they’re federal student loans (through the U.S. government) or private student loans (through a bank, credit union, or other financial institution) – is dependent on your total loan balance and your interest rate.

Federal loans aren’t inherently less expensive than private loans, or vice versa. For federal student loans, your total repayment amount will be based on how much you took out, and your agreed upon interest rate that was decided by the U.S. Department of Education when you signed the paperwork.

For private student loans, your interest rate is typically based on your credit history and other financial factors. So if you have excellent credit, you could qualify for the lowest available rates – which may also be lower than what the government is currently offering.

Use Purefy’s Compare Rates tool to see student loan refinance offers from multiple top lenders — all in one place with one fast form. Quickly compare your interest rate and monthly payment options, as well as your lifetime interest savings, with no impact on your credit score.

Wondering how is student loan interest deduction calculated?

Get ready to increase your tax return … thanks to your student loans. The U.S. tax code makes it possible to get back some of the money you pay on your student loans.

This valuable tax benefit is called the student loan interest deduction. The student loan interest deduction allows eligible student loan borrowers to deduct some or all the amount they paid in interest on their student debt as an adjustment to their income.

Learn all about the student loan interest tax reduction with our complete guide on how to save the most money possible on your student loans next tax season.

If you qualify, you can use the deduction to reduce your income by up to $2,500, depending on how much you paid and your modified adjusted gross income (MAGI).

Like many other tax benefits, the value of the student loan interest deduction is gradually reduced if your MAGI is between $65,000 and $80,000 (or $135,000 to $165,000 if you’re married filing jointly). If your MAGI exceeds those ranges, the IRS won’t allow you to claim the deduction at all.

Other requirements include:

  • You must have taken out the student loan for the sole purpose of paying qualified education expenses while enrolled at least half-time at an eligible educational institution.
  • You took out the loan for yourself, your spouse, or someone who was your dependent when you borrowed the money.
  • You didn’t receive the loan from a family member or through a qualified employer plan, such as a 401(k).
  • You can’t be claimed as a dependent by someone else on their tax return.

If you’re a parent, you can claim the deduction if no one else claims your child as a dependent on their tax return, if you’re legally obligated to pay the interest on a qualified student loan, and if you actually paid the interest on the loan.

If you meet the IRS requirements, then you can include some or all the student loan interest you paid during the year.

Looking for a student loan deferment interest calculator? You may be wondering how do they calculate interest on student loans if you defer payments.

How your interest rate is affected by deferring payments depends on a number of factors. One of which is how you’re deferring payments and if you have federal or private student loans.

If a borrower applies and is approved for federal loan deferment, payments can be postponed on student loans for up to three years. If a borrower is eligible for a deferment, they also may not be responsible for paying the interest that accrues on their loan during the deferment period. Eligibility is typically determined by medical, professional, or financial hardship.

Some private lenders also offer deferment, for example to borrowers who go back to school to pursue another degree, or for military personnel who go on active duty.

Another option for deferring payments is through forbearance. Entering forbearance allows federal student loan borrowers to postpone making payments on their loans. However, the borrower is still responsible for paying the interest that accrues on their student loans while in forbearance. The interest can be paid as it accrues during the forbearance period, or it can be allowed to accrue and be capitalized — added to the loan balance — at the end of the forbearance term. There are two types of federal forbearance:

  • General: eligibility and the length of the forbearance period is determined on a case-by-case basis (usually based on medical or financial need).
  • Mandatory: If a borrower meets the requirements for a mandatory forbearance, the loan servicer must allow them to postpone payments for up to 12 months at a time.

Check out our guide Which Is Best for Me? Student Loan Forbearance vs. Deferment for more information.