Student Loan Refinance Savings Calculator
Example: Current loan balance: 40000 $ · Current interest rate (APR): 7.5 % · Months left on current loan: 120 months · New refinanced rate (APR): 5.25 % · New loan term: 10 years
| Total lifetime savings | $5,477 |
| Monthly payment savings | $46 |
| New monthly payment | $429 |
| Current loan total cost | $56,977 |
Worked example
Say you owe $40,000 at 7.5% with 120 months left, paying about $475 a month for roughly $57,000 total. Refinancing to 5.25% over a fresh 10-year term drops the payment to about $429 a month and roughly $51,500 total. That is about $46 a month and around $5,500 saved over the life of the loan — but only because the new term is the same 10 years, not longer.
Frequently asked questions
Does a lower monthly payment always mean savings?
No. Stretching the loan over a longer term lowers the monthly payment but can increase total interest, because you pay for more months. This tool shows both numbers so you can see whether a smaller payment is real savings or just a longer, costlier loan.
What do I give up refinancing federal loans?
Refinancing federal loans into a private loan permanently forfeits federal protections: income-driven repayment, deferment, forbearance, and forgiveness programs like PSLF. Only refinance federal loans if you are confident you will never need those safety nets.
What rate can I expect?
Refinance rates depend on your credit score, income, loan term, and whether you choose fixed or variable. Get real quotes from several lenders — most offer a soft-credit prequalification — and enter the actual rate you are offered rather than a guess.
Are there fees to refinance a student loan?
Reputable student loan refinance lenders usually charge no origination or prepayment fees, but always confirm. If a lender does charge fees, subtract them from the savings this calculator shows to judge whether the deal is still worthwhile.