To see how to calculate student loan interest in practice, get out your pen and paper and follow along using the following example. Not a math person? Our student loan interest calculator below does the calculation for you.
For this example, say you borrow $10,000 at a 7% annual interest rate. On a 10-year standard repayment plan, your monthly payment would be about $116.
1. Calculate your daily interest rate (sometimes called interest rate factor). Divide your annual studen loan interest rate by the number of days in the year.
Example: 0.07/365 = 0.00019, or 0.019%
Your Calculation: 0.00/365
Your Daily Interest Rate Calculated: , or %
2. Calculate the amount of interest your loan accrues per day. Multiply your outstanding loan balance by your daily interest rate.
Example: $10,000 x 0.00019 = $1.90
Your Calculations: $0 x
Interest your loan accrues per day: $ 0.00
3. Find your monthly interest payment. Multiply your daily interest amount by the number of days since your last payment.
Example: $1.90 x 30 = $57
Your Example: $0.00 x 30
Your monthly interest payment alone: $0.00
4. How much Bitcoin can you buy right now instead of paying for your loans?
Total Loan Buys: 0 Bitcoin.
Monthly Interest Alone Buys: 0 Bitcoin.