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Student Loan vs Mortgage Payoff Calculator

Where should your extra cash go? Student loans usually have higher nominal rates, but tax treatment and federal loan protection complicate the picture. This calculator compares effective after-tax rates and recommends a priority.

Student loan balance

Student loan rate

Mortgage balance

Mortgage rate

Itemize mortgage interest?

Student interest deduction eligible?

Extra monthly amount

Recommendation

Pay mortgage first

Effective student loan rate

5.07%

Effective mortgage rate

7.12%

Rate spread

2.05%

higher rate wins

First-year interest savings

$160

How the math works

Pay down the debt with the highest after-tax effective rate first. Student loan interest deduction (up to $2,500/yr under income limits) reduces effective rate. Mortgage interest deduction helps only if you itemize — most don't post-2017.

Federal student loans have other non-rate considerations: income-driven repayment plans, potential forgiveness (PSLF, teacher), and deferment options. Don't accelerate payoff on federal loans expected to be forgiven.

Editorial noteMaintained by EveryCalc - Reviewed June 2026

EveryCalc calculators are designed for fast, practical estimates with transparent inputs and no required account. We use plain formulas, visible assumptions, and related tools so visitors can check the result from more than one angle.

Results are informational only. For financial, tax, legal, medical, construction, or other high-impact decisions, verify the output against primary sources or a qualified professional.

Learn more about our review process on the EveryCalc methodology page.

How this calculator works

What this page estimates

This Student Loan vs Mortgage Payoff Calculator is built to give a quick, browser-based estimate for student loan vs mortgage payoff. Where should your extra cash go? Student loans usually have higher nominal rates, but tax treatment and federal loan protection complicate the picture. This calculator compares effective after-tax rates and recommends a priority. The inputs stay on the page during normal use, and the result should be treated as an estimate for planning, comparison, or education rather than professional advice.

Calculation approach

The calculator applies the standard relationship implied by the inputs, then formats the answer so it can be checked and reused. For finance tools, the most important step is using consistent units, rates, time periods, and assumptions before comparing the result with another calculator or outside quote.

Example workflow

For example, start with a realistic value you already know, change one input at a time, and watch how the answer moves. That makes it easier to tell whether the result is being driven by the main amount, the rate, the time period, or a unit conversion.

Practical checks

Use current, real-world numbers when the result affects money, health, tax, or legal decisions.
Run a low, base, and high case when the inputs are estimates.
Check the related calculators below when the next decision depends on a different assumption.

How to interpret the student loan vs mortgage payoff result

Best use

Use the result as a planning number for comparing payments, rates, returns, tax reserves, or cash-flow choices before you request a quote or make a commitment.

Cross-check

Compare the answer with the contract, lender estimate, tax form, brokerage statement, payroll record, or invoice that will control the real-world outcome.

Watch for

Do not rely on a single optimistic rate, return, or fee assumption. Money pages work best when you run low, base, and high cases and keep professional advice separate from the estimate.

This page belongs to the Finance calculator library, so the answer should be read in the context of the decision you are modeling rather than as a universal rule.

Before relying on this student loan vs mortgage payoff estimate

Most calculator mistakes come from the inputs, not the arithmetic. Use this short audit before you reuse the answer in a spreadsheet, quote, application, or important conversation.

Confirm source numbers

Match balances, rates, fees, taxes, income, and payment dates against the lender quote, payroll record, tax form, statement, invoice, or contract.

Separate cash flow from total cost

A lower monthly payment can still cost more over time if fees, interest, taxes, or a longer term are hidden in the structure.

Run conservative cases

Test at least one higher-cost or lower-return case before using the output for a purchase, refinance, investment, loan, or tax decision.

Rerun this page when the rate, price, term, fee, tax rule, income, expense, or expected holding period changes.

How to Use

Enter both balances and rates.
Indicate whether you itemize for mortgage interest deduction.
Indicate student loan interest deduction eligibility (up to $2,500/yr under income cap).
Enter extra monthly cash available.

Frequently Asked Questions

Why would I not pay off student loans first?

Federal student loans have IDR plans (income-driven repayment) that cap payment at 5-10% of discretionary income with forgiveness at 20-25 years. If you're on track for PSLF or IDR forgiveness, paying extra destroys forgiveness value.

Is the student loan interest deduction worth much?

Up to $2,500/year of interest, phased out between $80-95k single / $165-195k joint AGI. At 22% marginal rate, that's $550 max tax savings. Not enormous but affects the effective rate calculation.

What about the mortgage interest deduction?

Only helps if you itemize. Most homeowners take the standard deduction ($31,500 joint 2026) post-2017. Run the Mortgage Interest Deduction vs Standard Deduction calculator to confirm your actual benefit.