Student Loan Refinance Calculator
Compare your current student loan payment against a refinanced rate and term to see monthly and lifetime interest savings.
How it works
Payment = P · r ÷ (1 − (1 + r)^−n) for each rate/term · Lifetime interest = payment × n − P · Savings = old interest − new interest
Refinancing replaces your existing loan with a new one at a different rate and term. A lower rate reduces the interest on every remaining dollar, but stretching the term can erase that gain by charging that lower rate for longer. The honest comparison is total interest over the life of each loan, not just the monthly payment — a smaller monthly bill on a longer term often costs more overall.
Worked example
A $40,000 balance at 7% with 10 years left runs about $464/month and ~$15,800 total interest. Refinancing to 5% over 10 years drops the payment to about $424/month and total interest to ~$10,900 — roughly $4,900 saved while keeping the same payoff date.
Frequently asked questions
Should I refinance federal student loans?
Refinancing federal loans into a private loan forfeits federal protections like income-driven repayment, deferment and forgiveness programs. The interest savings can be real, but weigh them against losing those safeguards, which this calculator does not value.
Why does a lower rate sometimes cost more?
If you extend the term, you pay the new lower rate over more months. The extra months of interest can outweigh the rate cut, raising lifetime interest even though the monthly payment falls. Keep or shorten the term to lock in the savings.
Are there refinancing fees?
Reputable student loan refinancers usually charge no origination or application fees, but always confirm. Any fee reduces or delays the break-even point on your savings.
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Educational estimate, not financial advice. Actual loan terms, fees and interest depend on your lender and credit profile.