Does this calculator cover income-driven repayment (IDR) or forgiveness programs?

No. It models standard fixed-rate amortization only. Federal loans may offer IDR plans, deferment, forbearance, and forgiveness programs such as PSLF. If you refinance federal loans into a private loan, you may permanently lose those benefits, so you should weigh them carefully before refinancing.

How should I think about variable-rate refinance offers?

This calculator assumes a fixed APR for your new loan. For variable-rate loans, future payments and interest can change as rates move. To approximate variable scenarios, you can run multiple calculations at different rates (for example, current rate, +1%, +2%) to see how sensitive your payment and total interest are to rate changes.

What if I pay refinance fees in cash instead of financing them?

If you plan to pay fees out of pocket, set the fees input to 0 so the new balance reflects only the amount being refinanced. You can then compare interest savings from the calculator against the separate cash cost of fees to decide whether the refi still makes sense.

Is refinancing always better if the new interest rate is lower?

Not always. A lower rate with a much longer term can still increase total interest paid even if the monthly payment is smaller. Use both the monthly savings and interest savings outputs to judge whether the refi aligns with your goals, and remember to consider any federal protections you might lose.

Can I change the term to see how quickly I can pay off my loans?

Yes. Adjust the new term (years) to explore how shorter terms increase monthly payments but can dramatically reduce total interest, while longer terms lower payments at the cost of higher lifetime interest.

finance calculator

Student Loan Refinance Calculator

Compare current student loan payment and interest to a refinanced loan with a new rate/term, including fees, monthly savings, and total interest savings.

Results

Current monthly payment: $511
Current interest remaining: $16,316
New monthly payment: $477
New total interest: $12,275
Monthly savings: $34
Total interest savings: $4,041
Refi fees included: $0

Overview

Refinancing student loans means replacing your existing loan or group of loans with a new one—ideally at a lower interest rate, a more manageable monthly payment, or a shorter payoff timeline. But the trade-offs are not always obvious from headline APRs alone, especially when you change the term length or roll fees into the new balance.

This student loan refinance calculator compares your current loan against a proposed refinance side by side. Using your current balance, interest rate, and years remaining, it estimates your current monthly payment and the interest you are projected to pay over the rest of the term. It then does the same for a new loan with a different rate and term (and optional origination fees added to the balance), showing you monthly savings or increases and total interest savings so you can decide whether a refi is worth exploring before you apply.

How to use this calculator

Enter current balance, rate, and years remaining.
Enter new rate and term for the refinance.
Optionally enter origination fees (rolled into the new balance).
Review new payment, monthly savings, and total interest savings.

Inputs explained

Current balance: Total remaining student loan balance.
Current rate (%): Existing APR on your loan(s).
Years remaining: Time left on your current repayment term.
New rate (%): APR offered for refinancing.
New term: Desired repayment term for the refinance.
Refi fees: Origination or lender fees if rolled into the new loan.

How it works

We model your current student loan as a standard fixed-rate amortizing loan based on your remaining balance, current interest rate, and years left in the term. Using the usual amortization formula, the calculator solves for your current monthly payment and multiplies by the remaining number of months to estimate total dollars still to be paid, then subtracts the current balance to isolate the remaining interest.

For the refinance scenario, we take the same remaining balance, add any origination or refinance fees you choose to finance, and apply the new interest rate and term. The calculator again uses loan amortization math to compute the new monthly payment, the total amount you would pay over the new term, and the interest portion of that total.

Monthly savings are calculated as Current monthly payment − New monthly payment. A positive number means the refinance would lower your payment and free up cash flow; a negative number means your payment would increase—for example, if you choose a much shorter term to pay the loan off faster.

Total interest savings compare how much interest you are projected to pay under each scenario: Interest savings = Current remaining interest − New total interest. If this figure is positive, the refi is projected to save you interest overall; if it is negative, the new loan would cost more in interest, often because the term is longer even if the rate is lower.

Both scenarios assume fixed-rate, level-payment loans and do not model income-driven repayment, deferment, forbearance, or forgiveness programs. The results are a pure payment and interest comparison, not a full assessment of federal benefits or private lender terms.

Formula

Current payment = P × r(1+r)^n / [(1+r)^n − 1]
Current interest remaining = (Current payment × n) − Current balance
New payment uses the same formula with New rate, New term, and (Current balance + Fees)
Monthly savings = Current payment − New payment
Interest savings = Current interest remaining − New total interest

When to use it

Comparing refinance offers to see monthly payment changes.
Checking total interest savings vs your current loan.
Seeing the impact of changing term length (shorter vs longer).

Tips & cautions

Shorter terms raise payments but reduce total interest. Longer terms lower payments but increase total interest.
If fees are paid upfront in cash, set fees to 0 to avoid inflating the financed amount.
Consider federal loan benefits—refinancing to private can forfeit protections; consult a pro if unsure.
Assumes standard fixed-rate amortization for both the current and new loans; it does not model variable rates, graduated repayment, or income-driven repayment plans.
Does not account for federal loan benefits such as income-driven repayment, deferment and forbearance options, Public Service Loan Forgiveness (PSLF), or other forgiveness programs.
Treats origination fees as financed into the new loan when entered. If you plan to pay fees in cash, you should set the fees input to zero and analyze cash costs separately.

Worked examples

Refi to a lower rate, same term length

Current loan: $45,000 at 6.5% with 10 years remaining → current payment ≈ $511/month; current remaining interest ≈ $16,320.
Refi scenario: 5.0% for 10 years with no fees → new payment ≈ $477/month; new total interest ≈ $11,220.
Monthly savings ≈ $34; interest savings ≈ $5,100 over the remaining life of the loan.
This is a classic win-win refi: lower monthly payment and lower total interest, assuming you are comfortable with the new lender and terms.

Refi to a lower rate but longer term

Current loan: $60,000 at 7% with 8 years remaining → current payment ≈ $813/month; current remaining interest ≈ $17,700.
Refi scenario: 5.5% for 12 years with $500 in fees rolled into the new balance → new payment ≈ $553/month; new total interest ≈ $19,600.
Monthly savings ≈ $260, but interest savings ≈ −$1,900 (you pay more interest overall because the term is longer).
Here, the refi improves cash flow but increases lifetime cost—use the trade-off to decide whether lower payments or lower total interest matters more for you.

Deep dive

Use this student loan refinance calculator to compare your current payment and remaining interest against a new rate, term, and fee structure so you can see monthly savings and total interest savings before you refinance.

Enter your current balance, interest rate, and years remaining, then test different refinance offers—including shorter or longer terms and optional origination fees—to understand how each scenario affects both your monthly budget and the lifetime cost of your debt.

Because the tool highlights both payment changes and lifetime interest differences, it helps you decide whether a lower rate truly saves money, whether stretching your term for a smaller payment is worth the extra interest, and when keeping federal protections might be more valuable than moving to a private loan.

FAQs

Does this calculator cover income-driven repayment (IDR) or forgiveness programs?: No. It models standard fixed-rate amortization only. Federal loans may offer IDR plans, deferment, forbearance, and forgiveness programs such as PSLF. If you refinance federal loans into a private loan, you may permanently lose those benefits, so you should weigh them carefully before refinancing.
How should I think about variable-rate refinance offers?: This calculator assumes a fixed APR for your new loan. For variable-rate loans, future payments and interest can change as rates move. To approximate variable scenarios, you can run multiple calculations at different rates (for example, current rate, +1%, +2%) to see how sensitive your payment and total interest are to rate changes.
What if I pay refinance fees in cash instead of financing them?: If you plan to pay fees out of pocket, set the fees input to 0 so the new balance reflects only the amount being refinanced. You can then compare interest savings from the calculator against the separate cash cost of fees to decide whether the refi still makes sense.
Is refinancing always better if the new interest rate is lower?: Not always. A lower rate with a much longer term can still increase total interest paid even if the monthly payment is smaller. Use both the monthly savings and interest savings outputs to judge whether the refi aligns with your goals, and remember to consider any federal protections you might lose.
Can I change the term to see how quickly I can pay off my loans?: Yes. Adjust the new term (years) to explore how shorter terms increase monthly payments but can dramatically reduce total interest, while longer terms lower payments at the cost of higher lifetime interest.

Related calculators

finance

Loan Payment Calculator

Calculate the monthly payment for any personal, auto, or student loan using the principal, APR, and term.

finance

ROI Calculator

Calculate return on investment (ROI) plus annualized ROI for any holding period.

finance

Debt-to-Income (DTI) Calculator

Compute front-end and back-end DTI to see if you’re within common mortgage guidelines.

This student loan refinance calculator uses simplified fixed-rate amortization formulas and user-provided assumptions to estimate payments and interest savings. It does not account for all loan terms, variable rates, income-driven repayment, deferment, forbearance, or federal forgiveness programs, and it is not financial, legal, or tax advice. Refinancing federal or private loans can permanently change your rights and options. Review your current loan documents, compare full lender disclosures, and consult a qualified student loan or financial professional before refinancing.