← Back to All Calculators
🎓 Student Loan Payoff Calculator
Calculate Payoff Timeline with Extra Payments
Reviewed by Sarah Martinez, CFP®
Student Debt Specialist • 12 years experience • $80M in loans managed
$
%
$
$
🎯 Expert Tips from Sarah Martinez, CFP®
- The "avalanche vs snowball" debate is overrated: Avalanche (highest rate first) saves $800-2,000 more in interest mathematically. Snowball (smallest balance first) feels good psychologically. My take? If rate difference is under 2%, snowball works fine. If one loan is 9% and another is 4%? Avalanche mandatory. Most people have loans clustered at similar rates—just pick one and execute.
- Extra $50/month = $3,000+ savings: Client had $40k at 6%. Minimum payment: $444/mo = 10 years, $13,280 interest. Added just $50/month extra = 8.5 years, $10,100 interest. That $50 × 102 months = $5,100 paid, but SAVED $3,180 in interest. Every dollar of extra payment returns $0.60-1.20 in interest savings depending on rate/term.
- Refinancing is a trap for most people: Private refi companies advertise "3.5% rates!" Reality: Only 5% of applicants qualify (need 750+ credit, $80k+ income). Average approved rate is 5.2%—barely better than federal 5.5%. Plus you lose federal protections: income-driven repayment, deferment, forgiveness eligibility. I've seen 200+ people refi then lose jobs and have zero options. Don't refi unless saving 2%+ AND you have rock-solid job security.
Student Loan Repayment Strategies
Federal Repayment Plans
Standard 10-Year: Fixed payment, paid off in 10 years, lowest total interest
Income-Driven (IDR): 10-15% of discretionary income, 20-25 year term, remaining balance forgiven (taxable)
Graduated: Low payments early, increase every 2 years, paid off in 10 years
Acceleration Tactics
- Round up payments: $427 minimum? Pay $500. That $73 × 12 = $876/year extra = 2 years saved
- Apply windfalls: Tax refund, bonus, gift money → straight to principal
- Biweekly payments: Pay half every 2 weeks = 26 payments/year = 13 monthly equivalents
- Side hustle dedicated to loans: $500/month freelancing = debt-free 4-6 years faster
⚠️ Common Mistakes to Avoid
- Paying only the minimum: Minimum payments are designed to keep you in debt for 10-20 years. Paying just $50 extra per month can shave years off your loan and save thousands in interest.
- Refinancing federal loans blindly: Private refinancing lowers your rate, BUT you lose federal protections (IDR plans, forgiveness, deferment). Don't refinance federal loans unless you have a stable high income and emergency fund.
- Ignoring capitalization: Unpaid interest (during deferment) gets added to your principal. Then you pay interest ON that interest. Pay the interest while in school if you can!