Parent PLUS loans are federal loans available to graduate or professional students and parents of dependent undergraduate students. These loans can cover educational expenses up to the cost of attendance, minus other financial aid. Unlike some other student loans, Parent PLUS loans often have a fixed interest rate that can be higher than unsubsidized federal loans or private loans. Understanding how to calculate your monthly repayment is crucial for effective financial planning.
The Calculation Formula
The standard formula used to calculate the monthly payment (M) for an amortizing loan, such as a Parent PLUS loan, is as follows:
M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1]
Where:
M = Your total monthly loan payment
P = The principal loan amount (the total amount borrowed)
i = Your monthly interest rate (annual interest rate divided by 12)
n = The total number of payments over the loan's lifetime (loan term in years multiplied by 12)
How the Calculator Works
Our Parent PLUS Loan Repayment Calculator simplifies this complex formula for you. You provide:
Loan Amount ($): The total principal amount of the Parent PLUS loan.
Annual Interest Rate (%): The yearly interest rate applied to your loan. This is a fixed rate for Parent PLUS loans.
Loan Term (Years): The total number of years you plan to take to repay the loan. Standard repayment terms can vary, but 10 years is common, though extended repayment options may be available.
The calculator then converts the annual interest rate to a monthly rate (i = annual rate / 12 / 100) and the loan term in years to the total number of monthly payments (n = term in years * 12). It plugs these values into the formula above to determine your estimated monthly payment. It also calculates the total amount repaid over the life of the loan and the total interest paid.
Why Use This Calculator?
Financial Planning: Estimate your future monthly expenses to budget effectively.
Loan Comparison: See how different loan terms or potential interest rate changes (if refinancing were an option) would affect your payments.
Understanding Total Cost: Realize the full cost of borrowing, including the substantial amount of interest that can accrue over many years.
Payment Scenarios: Quickly compare payments across different repayment plans or loan amounts.
Important Note: Parent PLUS loans are federal loans, and they have specific repayment options and potential benefits like income-contingent repayment plans (though these are generally available for Direct Loans, not typically Parent PLUS loans directly unless consolidated). Always consult official federal student aid resources or a financial advisor for the most accurate and personalized information regarding your specific loan. This calculator provides an estimate based on standard amortization.
function calculateRepayment() {
var loanAmount = parseFloat(document.getElementById("loanAmount").value);
var annualInterestRate = parseFloat(document.getElementById("interestRate").value);
var loanTerm = parseFloat(document.getElementById("loanTerm").value);
var monthlyPaymentResultElement = document.getElementById("monthlyPayment");
var totalRepaymentElement = document.getElementById("totalRepayment");
var totalInterestElement = document.getElementById("totalInterest");
// Clear previous results
monthlyPaymentResultElement.innerText = "$0.00";
totalRepaymentElement.innerText = "";
totalInterestElement.innerText = "";
// Input validation
if (isNaN(loanAmount) || loanAmount <= 0) {
alert("Please enter a valid loan amount.");
return;
}
if (isNaN(annualInterestRate) || annualInterestRate < 0) {
alert("Please enter a valid annual interest rate.");
return;
}
if (isNaN(loanTerm) || loanTerm 0) {
monthlyPayment = loanAmount * (monthlyInterestRate * Math.pow(1 + monthlyInterestRate, numberOfPayments)) / (Math.pow(1 + monthlyInterestRate, numberOfPayments) – 1);
} else {
// Handle zero interest rate case
monthlyPayment = loanAmount / numberOfPayments;
}
var totalRepayment = monthlyPayment * numberOfPayments;
var totalInterest = totalRepayment – loanAmount;
monthlyPaymentResultElement.innerText = "$" + monthlyPayment.toFixed(2);
totalRepaymentElement.innerText = "Total Paid Over Life of Loan: $" + totalRepayment.toFixed(2);
totalInterestElement.innerText = "Total Interest Paid: $" + totalInterest.toFixed(2);
}
function clearForm() {
document.getElementById("loanAmount").value = "";
document.getElementById("interestRate").value = "";
document.getElementById("loanTerm").value = "";
document.getElementById("monthlyPayment").innerText = "$0.00";
document.getElementById("totalRepayment").innerText = "";
document.getElementById("totalInterest").innerText = "";
}