Calculating student debts is very simple. You just need to get the formula right, This formula involves multiplying the loan balance by the number of days your last payment and then multiplying the result by the interest rate factor. A daily formula calculates the amount of interest that accumulates on your loan each day. Hence, when making your calculations it’s important your consider your daily interest.
How to Calculate Total Interest Paid on a Student Loan
Well, the interest on a student loan might be basic or compound. Thus, to calculate student loan interest, you should ensure you determine your daily interest rate and then multiply it by your outstanding balance.
Federal student loans are very easy to determine because they have a fixed interest rate. But private student loans, might either have a fixed or variable rate, so you must ask your loan provider.
How to Calculate Total Amount Paid on a Loan
This calculation is done simply by multiplying the monthly payment by the total number of months and multiplying the total amount paid in interest. This is calculated by subtracting the loan amount from the total paid amount.
How to Calculate Monthly Loan Payments
The formula for this calculation is M = P [i(1 + i)^n] / [(1 + i)^n – 1], where M is the monthly payment, P is the loan amount, i is the interest rate (divided by 12), and n is the number of monthly payments.
What is a Loan Calculator
Loan calculator used for calculating monthly payments for various loan types. This could be either Mortgages, Vehicle loans, Personal loans, and many others. It also helps give you the best advice on how much you can afford to borrow based on your monthly income and other consideration taken.
Types of Student Loan Calculators
There are several types of student loans. Check the list below for the listed type of student loan calculator:
Loan Comparison Tools
Loan comparison tools help users to compare different loan options on their side. They take into consideration factors such as interest rates, fees, and also repayment conditions. This helps users to make favorable selections about the type of loan that provides the best conditions for their case.
Advanced Loan Calculators
It allows users to enter factors such as grace periods, deferment choices, and variable interest rates. They provide a more extensive analysis of loan repayment prospects and can assist borrowers in customizing their repayment plans to their specific financial circumstances.
Prepayment Calculators
These tools enable borrowers to determine the implication of making extra payments or paying off their loan ahead of schedule. Using this tool, users can also observe how prepayment affects their overall interest paid and the time it takes to return the loan.
Basic Loan Calculators
This tool gives users a simple estimate of monthly loan payments depending on loan amount, interest rate, and payback period. It’s easy to use and ideal for individuals seeking a quick assessment of their future borrowing commitments.
Income-Driven Repayment (IDR) Calculators
This tool is built for borrowers who are considering income-driven repayment programs such as Income-Based Repayment (IBR), Pay As You Earn (PAYE), or Revised Pay As You Earn (REPAYE). It uses data such as annual income, family size, and loan balance to predict monthly payments for various IDR programs.
Types of Loans that can be Calculated
Check out the listed type of loan that can be calculated:
Federal Student Loans
Private student loans
Consolidation loans
Loan Refinancing
How do you Calculate Loan Interest?
For calculating interest rates, use this formula: Interest = Principal × Rate × Tenure. This equation helps to calculate the interest rate on investments or loans.