Student Loan Payoff Calculator
This education loan payoff calculator shows exactly when you'll be debt-free and how much interest you'll pay in total, based on your current balance, rate and monthly payment. Enter your numbers to see a concrete payoff date instead of an open-ended balance.
Your total outstanding education loan balance.
The annual interest rate on your loan — check your lender's portal if you're not sure.
How much you're paying (or plan to pay) each month.
Months to pay off
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How long until this loan reaches ₹0 at your current payment.
How to use this student loan payoff calculator
- 1Current loan balance and interest rate: from your lender's account statement — if you have multiple loans, run each one separately or use a weighted-average rate.
- 2Monthly payment: what you're actually paying, or what you're considering paying if you increase it.
Understanding your results
Months to pay off is your real finish line at this payment level. Total interest paid shows the true cost of the loan beyond what you originally borrowed — a useful number to compare against increasing your monthly payment, since even a modest increase often cuts both figures substantially.
The formula
Each month: Interest = Balance × Rate ÷ 12, then Payment reduces the remaining balanceEvery month, interest accrues on the current balance, and your payment first covers that interest with the remainder reducing principal. As the balance shrinks, less of each payment goes to interest and more to principal — which is why payoff accelerates over time, even at a fixed payment amount.
A worked example
A ₹5,00,000 balance at 10% interest, paid down at ₹8,000/month, clears in about 89 months (a little over 7 years) and costs roughly ₹2,06,450 in total interest. Bumping the payment to ₹10,000/month cuts that down to about 65 months (5.5 years) and roughly ₹1,48,978 in interest — a meaningful reduction from a modest payment increase.
Things to know
This models a standard fixed monthly payment against a fixed-rate balance. If your loan has a floating rate, treat the interest rate here as your current rate and re-run the numbers whenever it changes. Under Section 80E, interest paid on an education loan is fully deductible from taxable income under the old tax regime for up to 8 years, which effectively lowers the real cost of carrying the loan.
Frequently asked questions
Does extra payment go straight to principal?+
With most lenders, yes — but confirm with yours, and explicitly mark any extra payment as 'apply to principal' if the option exists, since some lenders default to applying it toward future EMIs instead, which doesn't speed up payoff the same way.
Should I pay off my education loan or invest instead?+
It generally depends on comparing your loan's interest rate to a realistic expected investment return — a low-rate loan is often worth carrying while investing extra cash, while a high-rate loan is harder to beat with typical investment returns. Also weigh the Section 80E interest deduction, which reduces the loan's effective cost under the old regime.
What if my payment doesn't cover the monthly interest?+
The balance will grow instead of shrink — this calculator will show an unusually high months-to-payoff figure (or cap out) in that scenario, a sign your payment needs to increase to make real progress.
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