Student Loan Refinance Calculator: Estimate Savings & Compare Rates

A student loan refinance calculator helps you estimate how much you could save by refinancing. It uses your current loan balance, interest rate, and repayment term to show how a new loan could potentially lower your monthly payment or your total interest costs. 

A refinancing calculator is especially helpful if you're comparing lender offers or deciding whether refinancing makes sense based on your financial goals.

To estimate your student loan refinance savings, enter the following information into the calculator:

• Your remaining loan balance: The total amount you still owe on your student loans.
• Current interest rate: The rate you're paying on your existing loan.
• Current monthly payment: The amount you're paying now each month toward your loan.
• Your new interest rate: The estimated rate you could get if you refinance. You can use a prequalified rate from a lender or plug in a rough estimate.
• Your new loan term: The number of years you plan to take to repay the refinanced loan. This typically ranges between 5 and 20 years.

Once you fill in the details, the student loan refinance calculator will estimate your new monthly payment and total repayment cost. It will also show your potential savings over the life of the loan.

See Also: Compare the 10 Best Student Loan Refinance Lenders

Refinancing can change both your monthly payment and the total cost of your loan.

If you qualify for a lower interest rate, you could pay less in interest over time. Additionally, choosing a shorter repayment term can help you become debt-free faster and reduce your overall loan cost, but it can also mean higher monthly payments. If you extend your repayment term, your monthly payment will likely go down. But you'll pay interest for a longer period, which often increases the total amount you owe.

Before refinancing, it's important to weigh what matters most to you: lowering your monthly payment, paying off your loan faster, or saving the most in the long run.

Learn More: Should I Refinance My Student Loans?

The amount you can save by refinancing depends mostly on the new interest rate you qualify for. The lower the rate, the more you can reduce your total repayment cost.

For example, let's say you have $30,000 in student loans with a 10-year repayment term at a 9% interest rate. If you refinance to a 5% interest rate with the same repayment term, you could save around $7,536 over the life of the loan.

Not all refinancing offers are the same. To find the best deal, it's important to shop around, compare refinance rates, and look closely at the terms each lender offers. Many lenders let you check your rates with a soft credit pull, so you can see your options without affecting your credit score.

Here's what to focus on when comparing offers:

• Interest rates: Look for the lowest fixed or variable rate you qualify for. Even a small rate drop can lead to significant savings over time.
• Repayment terms: Most lenders offer terms between 5 and 15 years, though some go as long as 20 years. Shorter terms cost less overall but come with higher monthly payments.
• Loan fees: None of the lenders on Credible charge application or origination fees, but it's still worth checking for late fees or other charges.
• Cosigner requirements: If you don't meet a lender's credit or income criteria, you may need a cosigner. Some lenders also offer cosigner release after a set number of on-time payments.

Take time to review the full loan details, not just the monthly payment, so you understand the total cost and any borrower benefits included, like deferment options or unemployment protection.