Student Loan Prepayment & Payoff Calculator
- August 14, 2018
- Posted by: Dave Rathmanner
- Category: Student Loans
After graduating, student loan debt can feel like a heavy weight holding you back from your goals. Knowing that you have ten years or more of payments ahead of you can make going on vacation, starting a small business, getting married or buying a house feel impossible. However, you can payoff your student loans faster and save money in interest by prepaying your loans early. Even small extra payments can save you significantly over the length of your loan in interest payments.
We created our student loan payoff calculator to help you determine just how much you can save by using this prepayment strategy. You can also use this as a student loan repayment calculator to see how long you will be paying your student loans for. If you simply want to calculate your monthly payment, check out our student loan payment calculator.
This student loan prepayment calculator takes into account your loan amount, interest rate, term length, and the extra amount you can put towards your loans each month or the date you want to finish paying off by. It returns how much you could save by prepaying early.
If you cannot come up with an extra $100 a month, do not get discouraged. Contributing even an extra $10 or $15 can add up over time, cutting down your repayment term and saving you money in interest. Some easy ways to find extra money include:
- Apply Your Tax Refund: If you get any money back at tax time, take it and put it towards paying off your student loan debt. This approach is a smart way to make your refund go far; what it saves you in interest is far more than it could earn in a savings account.
- Use Any Windfalls: Whether you get a check for your birthday or get a small bonus at work, apply any unexpected money to your debt. Since you never accounted for that money, using it for student loan prepayments will not hurt your budget.
- Cash in Change: Keep a change jar and empty your pockets or purse when you get home at night. Each month, roll your change and bring it to the bank. An extra $10 from loose nickels and dimes can help you payoff your student loans.
You can see all of our student loan calculators here.
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