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Student Loan Refinance Calculator

A refinance replaces your student loans with a new private loan at a market rate. The appeal is obvious when the rate drops two points; the trap is that a lower rate over a longer term can cost more in total, and the fees you pay to get it need to be earned back.

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Origination and application fees. Enter 0 for a fee-free offer.

Results update as you type. Nothing leaves your device.

Monthly payment reduction

$37.91

$356.11 becomes $318.20 — a rate cut of 2.5% on $30,000.

Lifetime interest saved
$4,549.05
Fees
$500.00
Net saving after fees
$4,049.05
Fees recovered after
14 months

Current loan versus refinanced loan

Current loanRefinanced loan
Interest rate7.5%5%
Monthly payment$356.11$318.20
Time left10 years10 years
Total interest$12,732.64$8,183.59
Total paid$42,732.64$38,183.59
Upfront fees$500.00

Total paid excludes the upfront fees, which are listed separately so the two columns stay comparable.

Where the saving comes from

SourceEffect on lifetime interest
Lower rate, holding the remaining term$4,549.05
Term unchanged$0.00
Fees paid to get the new rate-$500.00
Net effect$4,049.05

A positive term effect means the shorter term saved interest; a negative one means the longer term added it.

Refinancing works out $4,049.05 better over the life of the loan, and the $500.00 of fees is recovered within 14 payments. Check what you give up first: federal income-driven plans, forgiveness programmes and federal deferment options do not survive a refinance.

This calculator puts the two loans side by side on the same balance, splits the saving into the part that comes from the rate and the part that comes from the term, and shows how many payments it takes to recover the fees.

How this student loan refinance calculator works

Break-even on the fees

Start with the monthly payment difference. If the new loan saves $40 a month and the fees are $500, simple division gives 13 payments before the fee is repaid. That is the point where the decision stops being a bet on staying in the loan.

The lifetime number matters just as much: total payments on the old loan against total payments on the new one, plus the fees. A refinance that saves less over its whole life than it costs in fees is not a refinance, it is a longer payment plan.

Rate versus term: two different savings

The table separates them. "Lower rate, same remaining term" holds the term constant and prices the rate cut alone — that part is always a genuine saving. "Term change" prices the effect of paying for more or fewer months.

That second line is where most refinances go wrong. Dropping from 7.5% to 5% over 20 years instead of 10 lowers the payment sharply, and can still add thousands of dollars of interest.

What you give up by refinancing

Refinancing federal loans with a private lender is effectively permanent: income-driven repayment, Public Service Loan Forgiveness, federal deferment and forbearance, and federal death or disability discharge all disappear. Only refinance federal loans when you are certain none of those apply to you.

Private loans have none of those protections to lose, so rate and term are the whole question. Partial refinancing — only the private loans, or only the highest-rate graduate loans — keeps the federal protections on everything else.

Worked examples

Each example below was run through the calculator on this page when the site was built, so the numbers match what you see when you enter the same inputs.

$30,000 at 7.5% refinanced to 5% over 10 years

Balance being refinanced
$30,000.00
Current interest rate
7.5%
Years left on the current loan
10 years
Refinance rate offered
5%
New loan term
10 years
Fees paid upfront
$500.00

Monthly payment reduction

$37.91

$356.11 becomes $318.20 — a rate cut of 2.5% on $30,000.

Lifetime interest saved
$4,549.05
Fees
$500.00
Net saving after fees
$4,049.05
Fees recovered after
14 months

Same term, so every dollar of saving comes from the rate — the cleanest kind of refinance.

The same rate cut over 20 years

Balance being refinanced
$30,000.00
Current interest rate
7.5%
Years left on the current loan
10 years
Refinance rate offered
5%
New loan term
20 years
Fees paid upfront
$0.00

Monthly payment reduction

$158.12

$356.11 becomes $197.99 — a rate cut of 2.5% on $30,000.

Lifetime interest saved
-$4,784.17
Fees
$0.00
Net saving after fees
-$4,784.17
Fees recovered after
no fee to recover

The payment falls by half, but the extra ten years cost more interest than the rate cut saves.

Fee-free offer at one point lower

Balance being refinanced
$30,000.00
Current interest rate
7.5%
Years left on the current loan
10 years
Refinance rate offered
6%
New loan term
10 years
Fees paid upfront
$0.00

Monthly payment reduction

$23.04

$356.11 becomes $333.06 — a rate cut of 1.5% on $30,000.

Lifetime interest saved
$2,765.26
Fees
$0.00
Net saving after fees
$2,765.26
Fees recovered after
no fee to recover

Modest rate cuts still pay off when nothing is charged to get them and the term does not change.

Refinance that costs more than the current loan

Balance being refinanced
$30,000.00
Current interest rate
7.5%
Years left on the current loan
10 years
Refinance rate offered
9%
New loan term
10 years
Fees paid upfront
$250.00

Monthly payment increase

$23.92

$356.11 becomes $380.03 — a rate cut of -1.5% on $30,000.

Lifetime interest saved
-$2,870.64
Fees
$250.00
Net saving after fees
-$3,120.64
Fees recovered after
never

A higher rate with fees has no break-even point: there is nothing to recover.

Frequently asked questions

How many months does a refinance take to pay for itself?

Divide the upfront fees by the monthly payment reduction. A $500 fee against a $40 monthly saving breaks even after about 13 payments. If you might move, go back to school or pay the loan off sooner than that, the fees never get recovered.

Is a lower rate always worth refinancing for?

Only if the term does not stretch. Halving the rate but doubling the term usually increases total interest, and the payment falls enough to hide it. Keep the term the same, or shorter, and the rate cut turns into a real saving.

Should I refinance federal student loans?

Usually not, unless you are sure you will never need income-driven repayment, Public Service Loan Forgiveness, federal deferment or disability discharge. Those protections cannot be bought back once the loans are private.

Can I refinance with a co-signer?

Yes, and it often lowers the rate substantially. The co-signer is fully responsible for the debt, and many lenders offer a co-signer release after a set number of on-time payments, which is worth confirming before signing.

Does refinancing hurt my credit score?

A hard inquiry costs a few points and the new account lowers your average account age. Shopping several lenders within a short window is usually counted as one inquiry for scoring purposes, and a lower monthly payment improves debt-to-income ratio.

What fees do student loan refinances charge?

Many lenders charge nothing and recover the cost in the rate; others charge 1% to 6% of the balance as an origination fee. Compare the APR rather than the rate so the fee is included in the comparison.

Assumptions and sources

  • Both loans are priced with the standard amortization formula on the same balance, so only the rate and the term differ.
  • Break-even is the upfront fee divided by the monthly payment reduction, rounded up to whole payments.
  • Federal programme eligibility (income-driven repayment, Public Service Loan Forgiveness, deferment and discharge) is outside the model and must be checked before refinancing federal loans.

Last reviewed 2026-09-14. This page is an estimate tool, not financial, tax or legal advice.Read the full disclaimer.

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