Student Loan Refinance Savings Calculator

Student loan refinance savings calculator for comparing payments and total interest

Refinancing a student loan is usually one decision: will a new loan reduce your overall cost enough to justify switching. This calculator is built for that exact purpose. It compares your current loan to a refinance offer and estimates how your monthly payment and total interest could change.

Most people focus on the new interest rate. That is necessary, but not sufficient. A lower rate does not automatically mean you save money if the refinance term is longer, or if fees offset the monthly savings. The clean way to evaluate the offer is to compare two full repayment paths: current loan cost versus refinance loan cost.

Use the default inputs if you just want a fast answer. Enter your current balance, current APR, and the remaining term. Then enter the refinance APR and refinance term. The calculator will estimate both monthly payments using standard amortization and show total interest over the life of each loan. If you have fees or you only plan to keep paying for a limited period, open the Advanced section and add those details for a more realistic view.

Assumptions and how to use this calculator

• The calculator assumes both loans are standard amortizing loans with a fixed interest rate and fixed monthly payment across the term.
• It assumes your refinance loan amount matches your current remaining balance and does not include cash out or additional borrowing.
• Refinance fees, if entered, are treated as a one-time out-of-pocket cost and are included when estimating net savings and break-even time.
• If you provide “months you expect to keep paying,” the calculator estimates savings over that window rather than assuming you will keep the loan to the end.
• The break-even estimate is based on monthly payment savings (and the time-window view uses simulated amortization to estimate remaining balance), so it is a practical estimate rather than a legal or lender quote.

Common questions

Is a lower APR always better?

No. A lower APR is good, but the term matters. If you refinance into a much longer term, you can end up paying more total interest even with a lower rate. The right comparison is total cost and total interest, not just the headline APR.

What if I do not know my exact remaining term?

Use your best estimate. If you are unsure, try two runs, one conservative and one optimistic, such as 5 years and 8 years. If the refinance only looks good in one scenario, that tells you the offer is sensitive to your remaining term and you should confirm the true value before deciding.

How should I treat refinance fees?

Enter any one-time cost you will pay to complete the refinance. Fees reduce the benefit of refinancing and can turn small monthly savings into a bad deal. If fees exist, the key question becomes how long it takes for the monthly savings to pay back that upfront cost.

Why does the calculator ask how many months I expect to keep paying?

Many borrowers do not keep a loan to the end. You might pay it off early, return to school, refinance again, or change your strategy. If you plan to keep the loan for a shorter period, the best comparison is the cost over that period and the remaining balance you would still owe. This helps you avoid evaluating a refinance based on a full-term projection you do not intend to follow.

Does this apply to variable-rate loans or income-driven plans?

Not reliably. This calculator is designed for fixed-rate, fixed-payment repayment paths. Variable-rate loans change over time and income-driven plans depend on income, rules, and recertification. If your situation depends on those structures, the numbers here can still be a rough reference, but you should not treat them as a decision-grade estimate.