Student loan calculator

The price of a loan, putting aside any extra fees, is the interest you pay. In other words, you need to repay the loan you received, plus the accumulated interest.

The main factors that drive your total payment are the following:

• borrowed money: the higher your loan balance, the more interest is charged;
• interest rate: the higher the rate, the more expensive it is to borrow; and
• the time frame over which you repay the loan: the longer the loan term, the more periods there are where your lender can charge interest on the balance of the loan.

As you can see, the interest that will accumulate on your loan's balance is usually your primary concern when borrowing money.

For this reason, it's essential to know how to calculate student loan interest.

Student loan interest rates

Through the following simple example, you can easily learn the process of interest computation. Let's assume that you borrow $10,000 at a 6% annual interest rate. On a 10-year standard repayment plan, your monthly payment would be about $111:

1. Calculate the daily interest rate, also called i
   how much should my monthly student loan payment be