How study loan interest works
Interest is worked out each month on the balance you still owe, at one twelfth of the annual rate. Early payments are mostly interest; as the balance falls, more of each payment repays the loan.
This calculator is for private study or education loans with a fixed monthly payment. Government student loans that you repay as a share of your income work differently; use the student loan repayment calculator for those.
Lenders may calculate interest differently (some charge it daily), so your actual interest can differ slightly.
Worked example
Borrowing £20,000 at 9% over 10 years costs £253.35 a month and £10,402.19 in interest, 52.0% of the amount borrowed. £1,747.54 of that is paid in the first year.
Over 5 years the payment rises to £415.17 but the interest falls to £4,910.03. At 7% over 10 years, the interest would be £7,866.04.
Interest while you study
Some lenders let you delay repayments until after your course, but interest may still be added during that time. If so, enter the balance you'll owe when repayments start.
Inputs for the study loan interest calculator
Amount to borrow
The amount you'll owe when repayments start.
Interest rate (per year)
The annual interest rate on your loan. The rate shown is only an example, so enter the rate from your quote.
Term
How many years you'll repay over. A longer term means paying interest for longer.
CALCULATOR QUESTIONS
Study loan interest calculator questions
How much interest will I pay on a study loan?
Enter your details above. For example, £20,000 at 9% over 10 years costs £10,402.19.
Does this work for government student loans?
No. Those are repaid from your income. Use the student loan repayment calculator instead.
Does a shorter term save interest?
Yes. In the example, 5 years instead of 10 saves £5,492.16 of interest, though the payment is higher.
What's the difference between the interest rate and the APR?
The interest rate is what's charged on the balance. The APR also includes most compulsory fees, so it's better for comparing the overall cost of different loans.