Education

Student Loan Payoff

Calculate how long it takes to pay off student loans and total interest paid.

Student debt in Canada averages over $26,000 at graduation. Understanding exactly how long repayment will take and how much interest you'll pay motivates informed decisions about extra payments.

Enter your numbers

Loan Balance ($)

Interest Rate (%)

Canada Student Loans are currently prime + 2%.

Monthly Payment ($)

Extra Monthly Payment ($)

Results update as you change the inputs. Calculations run in your browser.

Payoff Timeline

8y 9m

total Interest: $8800
total Paid: $36800
interest Percent: 31% extra paid in interest

See the formula

Formula and method

Months = -log(1 - (P×r)/PMT) / log(1+r)

Standard loan amortization. Monthly rate is annual rate divided by 12.

Worked examples

Standard repayment

Loan Balance ($):: 28000
Interest Rate (%):: 6.5
Monthly Payment ($):: 325
Extra Monthly Payment ($):: 0

Payoff Timeline: 9y 8m

Aggressive payoff

Loan Balance ($):: 28000
Interest Rate (%):: 6.5
Monthly Payment ($):: 325
Extra Monthly Payment ($):: 200

Payoff Timeline: 5y 3m

Assumptions and limits

Fixed interest rate throughout
Monthly payments at start of period

This tool provides an educational estimate. Rules, rates and personal circumstances can change the answer. Review the assumptions before relying on a result. Report a correction.

Common mistakes to avoid

Making only minimum payments — extending the loan 5+ years can double total interest paid.
Forgetting that interest accrues during in-school and grace periods.
Not taking advantage of the non-repayment assistance plan (NRAP) if struggling financially.

Frequently asked questions

What is the government repayment assistance plan?

The Repayment Assistance Plan (RAP) lets you cap your Canada Student Loan payment at a percentage of your income. If you qualify, the government may cover the difference and even reduce principal after 10 years.

Should I invest or pay off student loans?

If your loan rate is above ~5%, paying it off is a guaranteed "return" equal to your rate. If your loan rate is below your expected investment return (e.g., 3% loan vs 7% market), investing may win mathematically, but debt-free peace of mind has value.