Loan Capitalization Calculator:

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.

Example values provided. Change the amounts below to see the effects on the loan & potential savings.

Loan Principal: $
Interest Rate:
% (annual)
Loan Term:
Monthly Payment: $

Note: If monthly payment is left blank, the calculator will automatically compute and use the standard monthly loan payment amount based on the values entered above. You may enter a higher monthly payment in this field, if desired.

Deferment Period:
Interest Capitalization:



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