# Student Loan Repayment After Graduation Calculator

> See what interest builds up while you study and during the grace period, the balance when repayment starts and the monthly payment after graduation.

Category: Education · Applies to: Worldwide · Last updated: 2026-10-29
Interactive calculator: https://calculators.geekmidst.com/calculators/student-loan-repayment-after-graduation-calculator

Interest on most student loans keeps running while you study. This shows what that interest adds, whether you pay it, let it be added to the loan or have it covered, and what you then repay each month.

Also called: Student loan grace period calculator, Capitalised interest calculator.

## Inputs
- Amount borrowed (default 10000)
- Interest rate (unit % a year; default 6)
- Months until repayment starts (unit months; default 6)
- Interest before repayment (options: Added to the loan (capitalised), I pay it as it builds up, Not charged (subsidised); default capitalise)
- Repayment term (unit years; default 10)
- Currency

## Results
- Monthly payment
- Interest before repayment
- Balance when repayment starts
- Interest you pay before repayment
- Total interest
- Total paid
- Number of monthly payments

## Formula

```
Interest before repayment = P × r × months ÷ 12;  Balance = P (+ that interest if capitalised);  Payment = B × i ÷ (1 − (1 + i)^−n), i = r ÷ 12
```

Where:
- P: amount borrowed
- r: annual interest rate
- B: balance when repayment starts
- i: monthly rate
- n: number of monthly payments

## Worked example
1. Interest before repayment = 10,000 × 6% × 6 ÷ 12 = 300.
2. Capitalised, the balance becomes 10,300.
3. Payment = 10,300 × 0.005 ÷ (1 − 1.005^−120) = 114.35 a month.

**Result:** Letting six months of interest be capitalised turns a 10,000 loan into 10,300 and a payment of 114.35 a month instead of 111.02.

## What the result means

Paying the interest as it accrues keeps your balance at what you borrowed, so you never pay interest on interest. Compare the total paid under “capitalised” and “I pay it” to see what that is worth.

## Assumptions and limits
- Interest before repayment is simple interest, added once when repayment starts (how US federal loans capitalise).
- The interest rate is fixed and payments are equal and monthly.
- Income-driven, graduated or income-contingent plans (such as UK Plan 2 or 5) calculate payments from earnings, not this formula.
- Fees, rate discounts and partial-year disbursements are not modelled.

## Questions

### What does capitalised interest mean?

Unpaid interest is added to the principal, so from then on you pay interest on it too.

### Is it worth paying interest while still studying?

If you can, it lowers the balance repayment starts from and the total cost. In this example it saves about 400 over ten years.

## Related calculators
- [EMI Calculator](https://calculators.geekmidst.com/calculators/emi-calculator)
- [Loan Amortization Calculator](https://calculators.geekmidst.com/calculators/loan-amortization-calculator)
- [Education ROI Calculator](https://calculators.geekmidst.com/calculators/education-roi-calculator)
- [Simple Interest Calculator](https://calculators.geekmidst.com/calculators/simple-interest-calculator)
- [Student Loan Calculator](https://calculators.geekmidst.com/calculators/student-loan-calculator)

_This calculator gives estimates for planning. It is not financial advice, and lenders’ actual terms, fees and rounding may differ._

Source: GM¹X CalcVerse — https://calculators.geekmidst.com/calculators/student-loan-repayment-after-graduation-calculator