Good stopping point between Gimmelwald and CT with cheap hostels?

In terms of travel time, Milan is about 5 hrs from Gimmelwald, total trip time looks like 8.5 hrs (Gimmelwald to Vernazza), thus even though on the map Milan is well over half way (in terms of miles), it's probably the most logical stopping point for you if you don't want to do the whole trip at one go. To see the route, go here http://bahn.hafas.de/bin/query.exe/en and input the route.At 8.5 hours for the whole trip, perhaps you want to skip the expense of sleeping in Milan, going back to the station the next day, etc. and just go all the way to CT?If you decide to sleep in Milan, you could take some time in the morning to check out a few of the sights in Milan. I'll let others suggest hostels in Milan.

Looking at the Swiss train site, I see departures from Gimmelwald at 6:30, 7:00, 8:00 and 11:00. Note that the gondola from Gimmelwald to Stechelberg runs much more frequently as does the bus you will need to take from Stechelberg to Lauterbrunnen as does the train from Lauterbrunnend to Interlaken Ost. The schedules shown on the Swiss site are meant to easily connect you at Interlaken Ost to the train going to Spiez and then the high-speed in Spiez going to Milan. (Whew!!). You'll love the whole experience and the superb Swiss train system. You will startle at how quick the Swiss get you to change trains.

Kent is correct about the travel time. It's not really that bad. It's 4.5hrs to Milan if you get the better runs. The 8:00am run takes 6:35 hrs. You might want the 7:30am. If staying a night somewhere along the way, be cautioned that the high-speed from Spiez to Milan doesn't stop at too many places. Brig and Domodossola are two such places but these are short journeys. Unless you are really intent on seeing something for an extra evening, my suggestion is to bite the bullet and get yourelf to the CT and enjoy the late afternoon and evening there.