Student Loan Refinancing Savings Calculator
Calculate how much you save by refinancing your student loans to a lower interest rate.
See reduced monthly payments and total interest saved.
How Student Loan Refinancing Works Refinancing replaces your existing loan(s) with a new private loan at a lower interest rate. This can reduce your monthly payment, total interest paid, or both.
Monthly Payment Formula M = P × [r(1+r)^n] / [(1+r)^n − 1] Where:
- P = principal balance
- r = monthly interest rate (annual rate / 12)
- n = number of months in term
Example $45,000 balance, current rate 7.5%, 10 years remaining Current monthly payment: $534/month | Total interest: $19,077 After refinancing to 5.0%: $477/month | Total interest: $12,261 Monthly savings: $57 | Total interest saved: $6,816
Important Warning Refinancing federal student loans into a private loan means you permanently lose:
- Income-Driven Repayment (IDR) plans
- Public Service Loan Forgiveness (PSLF)
- Federal forbearance and deferment protections
- Potential future federal forgiveness programs
Only refinance federal loans if you are confident you will not need these programs.