Private Student Loan Refinance Breakeven Calculator
Estimate how much lifetime interest a private student loan refinance could save once you subtract closing costs and fees. The calculator compares both amortization schedules over your remaining term so you can see the true net gain or loss before signing paperwork.
Educational illustration only — consult your lender or advisor before refinancing.
Examples
- $68,000 balance, 8.20% APR now, 5.40% refinance APR, $900 fees, 7.0-year term ⇒ $6,887.84 net savings
- $42,500 balance, 9.10% current APR, 6.20% refinance APR, $650 fees, default 10-year term ⇒ $7,096.95 net savings
FAQ
How is the refinance breakeven amount calculated?
The tool computes monthly payments for the current and refinance APRs, totals the interest paid over the remaining term, and subtracts your closing costs so the final figure reflects true net savings.
What if my refinanced term length differs from my current loan?
Enter the number of years you expect to amortize after refinancing in the optional remaining term field so the calculation uses the correct schedule.
Does the analysis include deferment, forbearance, or federal protections?
No. It assumes a private student loan with standard amortization and does not consider income-driven repayment, deferment periods, or forgiveness benefits available on federal loans.
Can I model lender cash-back incentives?
Yes. Subtract any cash bonuses or credits from the closing cost input so the calculator reflects the net fees you will actually pay.
Additional Information
- Monthly payments are amortized for both APRs across the remaining term so interest charges can be compared apples to apples.
- The net result is the lifetime interest saved minus the closing costs you enter, shown in U.S. dollars.
- If the refinance APR is higher than your current APR the output will display a negative value to flag a loss.
- Remaining term defaults to 10 years, mirroring many private loan structures, but you can override it to reflect your payoff horizon.