US Student Loan Calculator (2026)
Calculate monthly student loan payments and total interest under Standard, Extended, Graduated and Income-Driven (RAP) repayment plans for 2026.
Written by Rahman · Last reviewed
Quick answer
The standard repayment formula is payment = P × r(1 + r)ⁿ ÷ ((1 + r)ⁿ − 1), spread over 10 years by default. Extended and graduated plans lower the monthly payment by stretching the term, which increases total interest paid. Income-driven plans size the payment to your earnings instead, and can end in forgiveness.
2026-27 federal student loan rates: 6.52% for undergrad direct loans, 8.07% for grad direct unsubsidized. This calculator assumes a constant rate for the full term. The SAVE plan was vacated by a federal court in March 2026 and ended by statute; income-driven calculations here follow its July 2026 replacement, the Repayment Assistance Plan (RAP) — a percentage of AGI based on income brackets, reduced by $50/month per dependent, with any remaining balance forgiven after 30 years. Existing IBR loans disbursed before July 2026 keep their original terms.
Results are estimates for general guidance and are not financial, tax or legal advice. Except where a calculator names a currency, figures carry no currency of their own — put in pounds and you get pounds back, put in rupees and you get rupees. Figures depend on the assumptions you enter and on rates that change over time — check current rates and speak to a qualified adviser before acting on them.
About the US Student Loan Calculator (2026)
Most US federal student loans default to a 10-year Standard Repayment Plan, but borrowers can choose among Extended (25 years, lower monthly), Graduated (10 years, payments increase), and the Repayment Assistance Plan (RAP) — the income-driven plan that replaced SAVE in July 2026, sizing payments to income with forgiveness after 30 years.
This calculator estimates your monthly payment, total interest, and total cost across all four plan types. RAP sets your payment from a bracket of your adjusted gross income (AGI), reduced by $50/month for each dependent, with a $10/month floor and government-subsidized top-ups so the balance never grows the way it could under SAVE.
payment = P × r × (1+r)^n / ((1+r)^n − 1)
Where P is the loan balance, r is the monthly interest rate, and n is the total number of monthly payments. RAP instead sets the payment from an AGI bracket (1% of AGI at $10k–20k, rising a point per $10k bracket to 10% above $100k), minus $50/month per dependent.
On a $40,000 federal undergrad loan at the 2026-27 rate of 6.52%, Standard Repayment gives a $455/month payment and $14,552 total interest over 10 years. Extended (25 yrs) drops to $271/month but balloons total interest to $41,175 — you'd pay back more than twice the principal. RAP for a single borrower earning $55,000/year with no dependents falls in the $50k–60k bracket (5% of AGI): $2,750/year, or $229/month — at this payment level the loan is not fully repaid within 30 years, and roughly $11,950 is forgiven at that point.
RAP replaced SAVE — a different mechanism, not just new numbers
A federal court vacated the SAVE plan in March 2026, and the One Big Beautiful Bill Act separately ended it by statute — so any older guide describing SAVE's "225% of the poverty guideline" formula is now describing a program that no longer exists. Its replacement, the Repayment Assistance Plan (RAP), launched July 1, 2026 and works on entirely different mechanics.
RAP sets the payment from a bracket of your AGI rather than from a protected-income calculation: 1% of AGI in the $10,001–20,000 bracket, rising one percentage point per $10,000 bracket up to 10% above $100,000, with a flat $10/month floor below $10,000. That annual figure is then reduced by $50/month for every dependent claimed on your tax return.
- A single borrower with no dependents earning $55,000 falls in the $50k–60k bracket (5% of AGI): $2,750/year, or about $229/month.
- The same income with two dependents keeps the same $229 base but deducts $100/month for the dependents, landing at about $129/month.
- Below $10,000 of AGI the payment is a flat $10/month regardless of dependents — RAP never drops to a $0 payment the way SAVE could.
Unlike SAVE, RAP does not let the balance grow: any interest a payment doesn't cover is waived rather than added to the balance, and a government match tops up whatever the borrower pays to at least $50/month of principal reduction every month. The balance can still take decades to clear at a low payment, but it moves in one direction only.
Forgiveness is a taxable event on most plans
The balance remaining after 30 years of qualifying RAP payments is cancelled. On most income-driven plans that cancelled amount is treated as ordinary income in the year it is forgiven, and tax is due on it — sometimes a five-figure bill arriving in a single year, decades after the borrowing.
Public Service Loan Forgiveness works differently and is not taxed federally, which is a substantial part of why it is worth pursuing for those whose employment qualifies. State treatment varies independently of the federal position.
- The larger the forgiven balance, the larger the eventual tax liability — so a plan that minimises monthly payments can maximise the final bill.
- Refinancing federal loans with a private lender permanently gives up access to income-driven plans, forgiveness and federal deferment protections. It is not reversible.
- Borrowers who took out loans before July 2026 can generally keep IBR if they were already using it; PAYE and ICR are scheduled to sunset by July 2028. Confirm current options with your loan servicer.
Repayment plan comparison ($40k at 6.52%)
| Plan | Monthly payment | Term | Total cost |
|---|---|---|---|
| Standard | $455 | 10 years | $54,552 |
| Extended | $271 | 25 years | $81,175 |
| Graduated | $261 → $784 | 10 years | ~$58,523 |
| Income-Driven (RAP) | ~$229* | 30 years | ~$82,500 + forgiveness |
*RAP payment is income-dependent, shown here for a single borrower earning $55,000 with no dependents. Forgiven balances under income-driven plans are currently taxable as income on most plans (PSLF is the exception — tax-free forgiveness for qualifying public service work).
Frequently Asked Questions
What are the 2026-27 federal student loan interest rates?
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For loans first disbursed July 2026 - June 2027: Direct Subsidized and Unsubsidized for undergrads = 6.52%; Direct Unsubsidized for graduate students = 8.07%; Direct PLUS for parents and grad students = 9.07%. Rates are set annually based on the May 10-Year Treasury auction plus a fixed margin.
How does income-driven repayment work now that SAVE is gone?
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A federal court vacated the SAVE plan in March 2026, and it was separately ended by statute. Its replacement, the Repayment Assistance Plan (RAP), launched July 1, 2026: it sets your payment from a bracket of your AGI (1%–10% depending on income) minus $50/month per dependent, with forgiveness after 30 years. Unlike SAVE, RAP waives any interest a payment doesn't cover and guarantees at least $50/month reduces your principal, so the balance can't grow indefinitely.
What is PSLF?
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Public Service Loan Forgiveness: after 120 qualifying monthly payments while working full-time for a US government or 501(c)(3) non-profit, the remaining federal balance is forgiven tax-free. Eligibility requires IDR plan + qualifying employer + Direct Loans.
Should I refinance federal loans with a private lender?
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Only if the savings are large AND you don't need federal protections: IDR, forbearance, deferment, PSLF, and possible administrative forgiveness all disappear when you refinance into a private loan. For graduates with high incomes and stable jobs, private refi can save 1-3% on the rate.
Are interest payments tax-deductible?
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Yes — up to $2,500 of student loan interest paid per year is deductible on your federal return, subject to income phase-outs (begins at $85,000 single / $175,000 MFJ for 2026, fully phased out at $100,000 / $205,000).
Sources
- U.S. Department of Education — SAVE plan ended, RAP next steps — Official confirmation that SAVE was vacated by a federal court and replaced by RAP on July 1, 2026. The announcement doesn't spell out RAP's exact payment formula — that was cross-verified against multiple independent financial-education sources.
- Federal Student Aid — 2026-27 Direct Loan interest rates — Official interest rates for loans first disbursed July 1, 2026 through June 30, 2027.