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Parent PLUS Loan — $40K at 8%

A Parent PLUS scenario: $40,000 borrowed at 8% over 10 years. A pre-filled student loan calculator scenario for parents financing a child's education.

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Last updated: 2026-08-19

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Your loan details

Interest accrues and capitalizes during grace

Applied 100% to principal

Results

Base payment

$485

Actual payment

$485

Total interest

$18,237

Interest saved

$0

Payoff time

120 months

Scheduled term, no extra payments

Total repayment

$58,237

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CalcAtlascalc.100ideas.netParent PLUS Loan — $40K at 8%Actual payment$485Total interest$18,237Total repayment$58,237calc.100ideas.net

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Balance & interest over time

Month-by-month breakdown

MonthPrincipalInterestBalance
1$219$267$39,781
2$220$265$39,561
3$222$264$39,340
4$223$262$39,117
5$225$261$38,892
6$226$259$38,666
7$228$258$38,439
8$229$256$38,209
9$231$255$37,979
10$232$253$37,747
11$234$252$37,513
12$235$250$37,278
13$237$249$37,041
14$238$247$36,803
15$240$245$36,563
16$242$244$36,321
17$243$242$36,078
18$245$241$35,833
19$246$239$35,587
20$248$237$35,339
21$250$236$35,089
22$251$234$34,838
23$253$232$34,585
24$255$231$34,330
25$256$229$34,073
26$258$227$33,815
27$260$225$33,555
28$262$224$33,294
29$263$222$33,030
30$265$220$32,765
31$267$218$32,498
32$269$217$32,230
33$270$215$31,959
34$272$213$31,687
35$274$211$31,413
36$276$209$31,137
37$278$208$30,859
38$280$206$30,580
39$281$204$30,298
40$283$202$30,015
41$285$200$29,730
42$287$198$29,443
43$289$196$29,154
44$291$194$28,863
45$293$192$28,570
46$295$190$28,275
47$297$189$27,978
48$299$187$27,679
49$301$185$27,379
50$303$183$27,076
51$305$181$26,771
52$307$178$26,464
53$309$176$26,155
54$311$174$25,844
55$313$172$25,531
56$315$170$25,216
57$317$168$24,899
58$319$166$24,580
59$321$164$24,258
60$324$162$23,935
61$326$160$23,609
62$328$157$23,281
63$330$155$22,951
64$332$153$22,619
65$335$151$22,284
66$337$149$21,947
67$339$146$21,608
68$341$144$21,267
69$344$142$20,924
70$346$139$20,578
71$348$137$20,230
72$350$135$19,879
73$353$133$19,526
74$355$130$19,171
75$358$128$18,814
76$360$125$18,454
77$362$123$18,092
78$365$121$17,727
79$367$118$17,360
80$370$116$16,990
81$372$113$16,618
82$375$111$16,244
83$377$108$15,867
84$380$106$15,487
85$382$103$15,105
86$385$101$14,720
87$387$98$14,333
88$390$96$13,944
89$392$93$13,551
90$395$90$13,156
91$398$88$12,759
92$400$85$12,358
93$403$82$11,955
94$406$80$11,550
95$408$77$11,142
96$411$74$10,730
97$414$72$10,317
98$417$69$9,900
99$419$66$9,481
100$422$63$9,059
101$425$60$8,634
102$428$58$8,206
103$431$55$7,775
104$433$52$7,342
105$436$49$6,906
106$439$46$6,466
107$442$43$6,024
108$445$40$5,579
109$448$37$5,131
110$451$34$4,680
111$454$31$4,226
112$457$28$3,769
113$460$25$3,308
114$463$22$2,845
115$466$19$2,379
116$469$16$1,909
117$473$13$1,437
118$476$10$961
119$479$6$482
120$482$3$0

Scenario Benchmark

Key figures for Parent PLUS Loan — $40K at 8%.

Base payment

$485

Total interest

$18,237

Total repayment

$58,237

Frequently asked questions

How the maths works

A student loan is a fixed-rate amortizing loan. A grace period lets interest accumulate and capitalize before payments start, so the balance you repay can exceed what you borrowed.

  1. 1During the grace period, monthly interest accrues on the balance and is capitalized (added to principal) when repayment begins.
  2. 2Base payment M = L·r / (1 − (1+r)^−n), where L is the capitalized balance, r the monthly rate and n the term in months.
  3. 3Each month, interest = balance·r and the rest of the payment reduces principal.
  4. 4An extra monthly payment goes 100% to principal, shortening the term and cutting total interest.

Figures are illustrative and exclude fees, deferment and forgiveness programs. Not financial advice.

Everything you need to know

What is interest capitalization?

During a grace period (typically six months after graduation), no payments are due but interest keeps accruing on unsubsidized loans.

When repayment starts, that accrued interest is added to your principal — you then pay interest on interest, which is why the balance can grow before you make a single payment.

Extra payments are the fastest lever

Every extra dollar you pay goes straight to principal, which cuts future interest and shortens the term — often by years.

The calculator shows exactly how many months (and how much interest) an extra monthly payment saves on your specific loan.

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