{
  "id": "student-loan-refinance",
  "version": "09ab17d261c6",
  "status": "published",
  "name": "Student Loan Refinance Calculator",
  "question": "Student loan refinance: is it worth it?",
  "summary": "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.",
  "category": "finance",
  "subcategory": "loans",
  "url": "https://www.acalculator.org/finance/student-loan-refinance-calculator",
  "markdown": "https://www.acalculator.org/finance/student-loan-refinance-calculator.md",
  "kind": "function",
  "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⌉.",
  "assumptions": [
    "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."
  ],
  "inputs": {
    "$schema": "https://json-schema.org/draft/2020-12/schema",
    "type": "object",
    "properties": {
      "balance": {
        "title": "Student loan balance",
        "description": "The total you still owe on the loans you would refinance.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 1000,
        "maximum": 10000000
      },
      "rate": {
        "title": "Current interest rate",
        "description": "The fixed yearly rate you pay now; for several loans, their rate weighted by balance.",
        "type": "number",
        "x-unit": "percent",
        "minimum": 0,
        "maximum": 30
      },
      "left": {
        "title": "Months left to pay",
        "description": "The number of monthly payments left on your loans now, for example 96 for 8 years.",
        "type": "integer",
        "minimum": 1,
        "maximum": 360
      },
      "newRate": {
        "title": "New interest rate",
        "description": "The fixed yearly rate a lender offers on the new loan.",
        "type": "number",
        "x-unit": "percent",
        "minimum": 0,
        "maximum": 30
      },
      "newYears": {
        "title": "New loan term (years)",
        "description": "The length of the new loan, often 5, 7, 10, 15 or 20 years.",
        "type": "integer",
        "minimum": 1,
        "maximum": 30
      },
      "costs": {
        "title": "Fees to refinance",
        "description": "Any origination or other fees for the new loan, paid in cash. Many lenders charge none.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 1000000
      }
    }
  },
  "outputs": {
    "saving": {
      "label": "Monthly saving",
      "description": "Current payment − new payment. Negative means the new payment is higher.",
      "format": "money"
    },
    "newPayment": {
      "label": "New monthly payment",
      "description": "Balance × r ÷ (1 − (1 + r)^−n) at the new rate and term.",
      "format": "money"
    },
    "oldPayment": {
      "label": "Current monthly payment",
      "description": "The level payment that repays the balance in the months left.",
      "format": "money"
    },
    "oldInterest": {
      "label": "Interest left on your loans now",
      "description": "Current payment × months left − balance.",
      "format": "money"
    },
    "newInterest": {
      "label": "Interest on the new loan",
      "description": "New payment × new months − balance.",
      "format": "money"
    },
    "net": {
      "label": "Net saving",
      "description": "Interest left now − interest on the new loan − fees.",
      "format": "money"
    },
    "breakEven": {
      "label": "Months to recover the fees",
      "description": "Fees ÷ monthly saving, rounded up, when there are fees and a saving.",
      "format": "integer"
    },
    "oldTotal": {
      "label": "Total you would repay now",
      "description": "Balance + interest left now.",
      "format": "money"
    },
    "newTotal": {
      "label": "Total you would repay after refinancing",
      "description": "Balance + interest on the new loan + fees.",
      "format": "money"
    }
  },
  "defaultAnswer": {
    "inputs": {
      "balance": 40000,
      "rate": 7,
      "left": 96,
      "newRate": 5.5,
      "newYears": 8,
      "costs": 0
    },
    "outputs": {
      "saving": 29.37579614836079,
      "newPayment": 515.9728870717652,
      "oldPayment": 545.348683220126,
      "oldInterest": 12353.473589132089,
      "newInterest": 9533.397158889456,
      "net": 2820.0764302426323,
      "oldTotal": 52353.47358913209,
      "newTotal": 49533.39715888946
    },
    "text": "Refinancing changes your payment from $545.35 to $515.97 a month, a net saving of $2,820.08 after fees."
  },
  "examples": [
    {
      "given": {
        "balance": 40000,
        "rate": 7,
        "left": 96,
        "newRate": 5.5,
        "newYears": 8,
        "costs": 0
      },
      "expect": {
        "oldPayment": 545.3486832201244,
        "newPayment": 515.9728870717607,
        "saving": 29.375796148363634,
        "oldInterest": 12353.473589131943,
        "newInterest": 9533.397158889027,
        "net": 2820.076430242916
      },
      "source": "hand calculation in content.mdx; 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)"
    },
    {
      "given": {
        "balance": 40000,
        "rate": 7,
        "left": 96,
        "newRate": 5.5,
        "newYears": 15,
        "costs": 500
      },
      "expect": {
        "newPayment": 326.8333818484534,
        "newInterest": 18830.008732721617,
        "net": -6976.535143589674,
        "breakEven": 3
      },
      "source": "hand calculation in content.mdx; 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)"
    },
    {
      "given": {
        "balance": 60000,
        "rate": 0,
        "left": 120,
        "newRate": 0,
        "newYears": 10,
        "costs": 0
      },
      "expect": {
        "saving": 0,
        "oldPayment": 500,
        "newPayment": 500,
        "net": 0
      },
      "source": "hand calculation in content.mdx: at 0%, 60,000 ÷ 120 for both loans"
    }
  ],
  "sources": [
    "Consumer Financial Protection Bureau, Should I consolidate or refinance my student loans? https://www.consumerfinance.gov/ask-cfpb/should-i-consolidate-refinance-student-loans-en-561/ (retrieved 2026-10-05)",
    "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)"
  ],
  "related": [
    "refinance",
    "student-loan",
    "student-loan-payoff",
    "loan-comparison"
  ],
  "changelog": []
}