Compute the monthly payment, total repayment, and total interest of a student or education loan, to plan your post-graduation repayment burden.
Input Data
Results
At a glance:A student loan amortises the principal with interest; the monthly payment, total repayment, and total interest follow the standard loan formula.
Formula
monthlyPayment = P × r·(1+r)^n / ((1+r)^n − 1) (r = annualRate%/12, n = termYears×12)
totalRepayment = monthlyPayment × n
totalInterest = totalRepayment − P
$$r = \\dfrac{\\text{Annual rate}\\%}{12},\\quad n = \\text{Term (years)} \\times 12$$$$\\text{Monthly payment} = P \\times \\dfrac{r(1+r)^n}{(1+r)^n - 1}$$$$\\text{Total interest} = \\text{Monthly payment} \\times n - P$$How to Use
- Enter the loan amount, annual rate, and term.
- Review the monthly payment, total repayment, and total interest.
FAQ
How is the Hong Kong government student-loan rate set?
Hong Kong offers means-tested and non-means-tested tertiary loans with different rates and interest-free arrangements (some are interest-free during study and start accruing only after graduation). This tool uses a fixed rate for a general estimate; follow your actual scheme's terms.
Should I choose a short or long repayment term?
A shorter term means higher monthly payments but less total interest; a longer term eases the monthly burden but costs more interest overall. New graduates with limited income may prefer a longer term, then prepay once income rises.
Is early repayment of a student loan worthwhile?
If the loan accrues interest, repaying principal early cuts future interest and is usually worthwhile; but if within an interest-free period or at a very low rate, keeping the cash for other uses may be better. Compare the loan rate with the return on alternative use of the money.
What government student loans exist in Hong Kong, and how do they differ from ordinary loans?
In Hong Kong, tertiary students borrow mainly through the Student Financial Office (SFO) — a means-tested loan under the grant scheme, and the Non-Means-Tested Loan Scheme (NLSPS), available regardless of family income. They differ from bank/personal loans in key ways: (1) usually much lower rates; (2) more lenient in-study arrangements — some interest-free or no-repayment during study, with a grace period after graduation; (3) NLSPS still accrues interest (often from a set point, possibly during study) and must be repaid on time — not free money. This tool gives a general fixed-rate amortising estimate; actual rates, interest-free/grace terms and repayment schedules vary by scheme, so follow the latest SFO announcements.
If it is interest-free in study and repaid only after graduation, is this calculator accurate?
This calculator models pure equal-monthly amortisation from the first period at a fixed rate to maturity. Real student loans often have arrangements it does not capture: (1) in-study interest-free / grace period — the accrual and repayment start point shifts later, so enter the post-graduation amount and term separately to estimate that burden; (2) interest capitalisation — some loans add grace-period interest back to principal, raising the post-graduation balance above the original; (3) early repayment — allowed and encouraged, so actual total interest is lower than the full-term estimate; (4) the rate may be adjustable. Use it to gauge the payment magnitude and compare terms; for exact figures follow the SFO and loan contract.
Content review: Calculatorism Finance Team. Results are for reference only; please refer to the relevant authorities for the official figures.