Student Loan Refinance Calculator – Should You Refinance?
Compare your current repayment plan with a refinanced rate and term to estimate whether you could lower payments or reduce total interest.
How this student loan refinance calculator helps
Refinancing can reduce borrowing costs when you qualify for a lower APR, but it may also extend repayment or remove federal borrower protections. This calculator helps compare both sides of the decision.
How the comparison works: Each plan gets its own fixed-rate monthly payment and payoff term. The refinance total includes the fee you enter; net lifetime savings are the current plan's total payments minus the refinance payments and fee.
Fee break-even: When the refinance lowers your monthly payment, the estimate divides the fee by the monthly payment reduction and rounds up to a whole month. This is a cash-flow estimate, not a prediction of lender approval or an interest-only calculation.
Assumptions: Payments are level, rates are fixed, and there are no extra payments, rate changes, taxes, or other lender charges. The estimate does not value federal repayment options, deferment, forbearance, or forgiveness eligibility.
Example: If your current loan has 8 years left and the refinance offer is for 10 years, the monthly payment may fall even if repayment lasts longer. Compare both total costs, including the refinance fee, before treating a lower payment as savings.
- Current balance: Outstanding principal on your student loans.
- Current remaining term: Years left on the existing repayment schedule.
- Refinance term: Years in the new lender's offer.
- Refinance fee: One-time cost added to the new plan's total.
- Net lifetime savings: Estimated total-cost reduction after the fee; a negative result means the refinance costs more.
What the result means
Net lifetime savings subtract the refinance payments and one-time fee from the payments scheduled under your current loan. The payment-based fee break-even estimates how long lower monthly payments would take to recover that fee; when the refinance payment is higher, there is no payment-based break-even.
Related calculators
Loan calculator for general amortization and repayment planning, Debt payoff calculator for balancing student debt with other obligations.
Frequently asked questions
- Could refinancing increase my monthly payment? Yes, if you shorten the term or skip a lower rate by extending the loan. The tool helps compare both outcomes.
- Does this include federal loan protections? No. Federal loans can offer borrower protections, repayment plans, and forgiveness programs that may outweigh a slightly higher rate.
What you give up when you refinance federal loans
Refinancing can lower your interest rate and reduce total interest paid, but if your loans are federal, refinancing with a private lender permanently forfeits federal protections such as income-driven repayment plans, deferment, forbearance, and potential loan forgiveness programs. That trade-off is worth weighing carefully even when the new rate looks appealing.
Refinancing makes the most sense when you have stable income, strong credit, and don't expect to need federal safety nets like income-driven repayment. Compare the new monthly payment and total interest against your current loan, and factor in any origination fees the new lender charges.
- Check your credit first: Refinance rates depend heavily on credit score and income stability.
- Compare fixed vs. variable rates: A lower variable rate carries the risk of rising over the loan term.
- Don't refinance federal loans you might need flexibility on: Job instability or a return to school makes federal protections more valuable.
Creator & reviewers
Creator persona
- Avery BennettPersonal finance & everyday budgeting
Reviewer personas
- Devon ShawFormula & assumptions review
- Sage MitchellClarity & usability review