Many have suggested that performance grading may be a factor in the increasing number of students reporting having mental health issues, including feelings of stress. Gradeless learning has been shown to ease the pressure on students because it encourages a focus on learning rather than performance. Indeed, gradeless learning has been documented to benefit well-being, stress reduction, motivation, and learning approach, but its influence on academic performance requires more investigation. Drawing on a quantitative analysis, we empirically examine the effect of gradeless learning on a broad set of outcomes including well-being and stress, but focus specifically on students' later academic performance as measured by grades. Our findings reveal that gradeless learning can increase motivation and reduce surface learning but has no significant effect on students' later academic achievements. The study concludes that gradeless learning can provide a relevant alternative to grades if carefully designed.