Student loan refinance: is it worth it?
Type what you owe on your student loans, the rate and the months left, then the new rate, term and any fees a lender offers. The student loan refinance calculator shows both monthly payments, the interest left on each, and the net saving after fees.
- Monthly saving
- $29.38
Refinancing changes your payment from $545.35 to $515.97 a month, a net saving of $2,820.08 after fees.
- New monthly payment
- $515.97
- Current monthly payment
- $545.35
- Interest left on your loans now
- $12,353.47
- Interest on the new loan
- $9,533.40
- Net saving
- $2,820.08
- Total you would repay now
- $52,353.47
- Total you would repay after refinancing
- $49,533.40
Monthly saving: $29.38. Refinancing changes your payment from $545.35 to $515.97 a month, a net saving of $2,820.08 after fees.
The results are estimates for information only. They are not financial, tax, or legal advice. Check the numbers with your lender or a qualified professional before you decide. Terms of use
How to calculate
Compares what you owe on your student loans now with a new loan at a new rate and term: the monthly payment, the interest left, the net saving after fees, and the months for the fees to pay off.
Example with the default inputs (Student loan balance $40,000.00, Current interest rate 7%, Months left to pay 96, New interest rate 5.5%, New loan term (years) 8, Fees to refinance $0.00): Refinancing changes your payment from $545.35 to $515.97 a month, a net saving of $2,820.08 after fees.
Method: payment = balance × r ÷ (1 − (1 + r)^−n), r = yearly rate ÷ 1200; now: n = months left; new: n = years × 12. Interest = payment × n − balance; net saving = interest now − new interest − fees; months to recover the fees = ⌈fees ÷ monthly saving⌉.
- Both loans are fixed-rate with level monthly payments; the current payment is the one that repays the balance in the months left.
- Fees are paid in cash, not added to the new loan.
- Refinancing federal loans with a private lender gives up federal repayment plans, forgiveness and other protections; the calculator counts money only.
- Type the rates you are offered; no live rates.
Worked examples
Each example is checked against the calculator on every build.
- Student loan balance $40,000.00, Current interest rate 7%, Months left to pay 96, New interest rate 5.5%, New loan term (years) 8, Fees to refinance $0.00 gives Current monthly payment $545.35, New monthly payment $515.97, Monthly saving $29.38, Interest left on your loans now $12,353.47, Interest on the new loan $9,533.40, Net saving $2,820.08.Source: Consumer Financial Protection Bureau, What is amortization and how could it affect my auto loan? https://www.consumerfinance.gov/ask-cfpb/what-is-amortization-and-how-could-it-affect-my-auto-loan-en-771/ (retrieved 2026-10-05)
- Student loan balance $40,000.00, Current interest rate 7%, Months left to pay 96, New interest rate 5.5%, New loan term (years) 15, Fees to refinance $500.00 gives New monthly payment $326.83, Interest on the new loan $18,830.01, Net saving -$6,976.54, Months to recover the fees 3.Source: Consumer Financial Protection Bureau, Should I consolidate or refinance my student loans? (refinancing federal loans into a private loan gives up federal repayment plans, forgiveness and other protections, and cannot be undone), https://www.consumerfinance.gov/ask-cfpb/should-i-consolidate-refinance-student-loans-en-561/ (retrieved 2026-10-05)
- Student loan balance $60,000.00, Current interest rate 0%, Months left to pay 120, New interest rate 0%, New loan term (years) 10, Fees to refinance $0.00 gives Monthly saving $0.00, Current monthly payment $500.00, New monthly payment $500.00, Net saving $0.00.
How it works
With the balance B, the current yearly rate R% and m months left, and a new rate R′% over Y years with fees C paid in cash:
- Current monthly payment P = B × r ÷ (1 − (1 + r)^−m), r = R ÷ 1200 (B ÷ m at 0%).
- New monthly payment P′ = B × r′ ÷ (1 − (1 + r′)^−n), r′ = R′ ÷ 1200, n = 12 × Y (B ÷ n at 0%).
- Monthly saving = P − P′ (negative when the new payment is higher).
- Interest left now = P × m − B; interest on the new loan = P′ × n − B (0 at a 0% rate).
- Net saving = interest left now − interest on the new loan − C.
- Months to recover the fees = ⌈C ÷ (P − P′)⌉, shown only when C > 0 and the saving is positive.
- Total you would repay now = B + interest left now; after refinancing = B + new interest + C.
Rules
- Balance $1,000 to $10,000,000; rates 0% to 30%; 1 to 360 months left; a new term of 1 to 30 whole years; fees up to $1,000,000.
Worked examples by hand
The default: $40,000 at 7% with 96 months left, refinanced at 5.5% over 8 years. P = $545.35; P′ = $515.97; saving $29.38 a month. Interest left now 545.35 × 96 − 40,000 = $12,353.47; new interest $9,533.40; net saving $2,820.08.
The same loans over 15 years with $500 of fees. P′ = $326.83, $218.52 a month less, but the new interest is $18,830.01: net saving 12,353.47 − 18,830.01 − 500 = −$6,976.54. The fees are recovered in ⌈500 ÷ 218.52⌉ = 3 months.
$60,000 at 0% over 120 months both ways. Both payments are 60,000 ÷ 120 = $500; no saving.
Other questions people ask
How do I know if refinancing my student loans saves money?
Compare the interest left on your loans now with the interest on the new loan, plus any fees. The net saving is the difference. A lower rate over the same or a shorter term saves money.
Why can a lower payment cost more?
A longer term spreads the balance over more payments. $40,000 at 5.5% over 15 years is $326.83 a month, $218.52 less than now, but the interest rises from $12,353 to $18,830.
What do I give up by refinancing federal student loans?
A private refinance ends the federal loan: you lose income-driven repayment, deferment, forbearance, Public Service Loan Forgiveness and other federal protections, and it cannot be undone (CFPB).
What are the months to recover the fees?
Fees ÷ the monthly saving, rounded up: how many months of lower payments it takes to earn the fees back. With $500 of fees and a $218.52 saving it is 3 months.
How is the current payment worked out?
As the level payment that repays your balance in the months left at your current rate. If your actual payment differs (for example on an income-driven plan), the comparison is a guide only.
Does the calculator use today’s refinance rates?
No. Type the rate a lender offers you; the site shows no live rates.