Loan Capitalization Calculator

Calculator Inputs

Some college loans allow borrowers to defer making interest payments on the loan while the student is in school. If a borrower defers paying the interest on a loan, the interest capitalizes, which means it is added to the principal of the loan. When this happens, the added cost for interest will increase the size of the loan’s principal, and thus, the amount of overall interest paid. The goal of this calculator is to help students and families understand the financial ramifications of capitalizing the interest on a student loan.

Amount of Loan (Principal): must be greater than 0.
Annual Interest Rate: must be between 0 and 100.
Term of Loan: must be greater than 0 and less than 30.
Term of Loan: must be an integer.
Deferment Period (Months until Repayment Begins): must be greater than 0
Interest Capitalizes: must be selected
Minimum Monthly Payment: cannot be negative.

Amount of Loan (Principal):$
Annual Interest Rate:      %
Term of Loan:      Years
Deferment Period (Months until Repayment Begins):     
Interest Capitalizes:    
Minimum Monthly Payment:  $


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