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Student Loan Refinance Calculator
Decide whether a refinance offer is worth it. Enter your current loan and the new rate and term, then press Calculate to compare monthly payments, lifetime interest and total savings.
Written by TopicDrill Editorial Team·Updated June 2026
Balance: current vs refinanced
Refinanced Current
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How the student loan refinance calculator works
The tool builds two loans from the same balance. The first uses your current rate and the months you have left; the second uses the new rate and term you are considering. Each is run through the standard amortizing-payment formula to find a level monthly payment, then the lifetime interest and total paid.
The chart plots the remaining balance on both loans year by year. Where the refinanced line sits below the current one, you are paying the loan down faster; where it sits above, the longer term is keeping you in debt longer even if the monthly payment feels lighter.
A quick example
Imagine $40,000 left at 7.5 percent with nine years to go. Refinancing to 5.25 percent over ten years drops the monthly payment noticeably, yet the extra year of payments eats into the interest savings. The calculator shows whether the lower rate still wins once the longer term is counted.
Things to keep in mind
Refinancing federal loans into a private loan permanently gives up federal benefits, so weigh that before chasing a rate. Review what you would lose at StudentAid.gov. If you plan to keep your current loan instead, see how extra payments help with our student loan payoff calculator.
Frequently asked questions
Does a lower rate always save money?
Not always. A lower rate cuts the interest charged each month, but stretching the loan over a longer term can erase that gain because you pay for more months. This calculator compares total interest and total paid on both loans so you see the true lifetime effect, not just the monthly payment.
How is the new monthly payment worked out?
It uses the standard amortizing-loan formula: the balance, the new monthly rate and the new number of months produce a single level payment that clears the loan exactly at the end of the term. The same formula is applied to your current loan so the comparison is apples to apples.
Should I refinance federal student loans?
Refinancing federal loans with a private lender gives up federal protections like income-driven repayment, deferment and forgiveness. If you rely on those, the rate savings may not be worth it. Refinancing tends to make most sense for private loans or for borrowers with stable income who will not need those programs.
What rate do I need to make refinancing worthwhile?
There is no single threshold. Keep the term the same or shorter and any rate below your current one reduces total interest. If you lengthen the term to lower the payment, you may need a noticeably lower rate to still come out ahead overall. Run both scenarios here before deciding.
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