Student loan refinancing typically carries no closing costs, unlike a mortgage refinance — so the real question isn’t how long it takes to recoup a fee, it’s simply total interest paid, old loan versus new.
How it works
Both loans are amortized on their own rate and term, and the total interest paid over each full term is compared directly. A lower rate with a much longer term can still cost more in total interest than a higher rate over a shorter one — this calculator shows both totals rather than only the monthly payment difference.
What this does not include
Refinancing a federal loan into a private one gives up federal repayment options and forgiveness benefits, per the CFPB — a real cost this calculator, which only compares interest, does not put a dollar figure on.
How to use this calculator
- Enter your current loan’s balance, rate, and remaining term.
- Enter the new loan’s rate and term you’re considering.
Frequently asked questions
Can refinancing cost more even at a lower rate?
Yes — stretching the term out longer can increase total interest paid even though the rate and monthly payment both go down, which is exactly why this calculator shows the total, not just the payment.
Should I refinance a federal student loan?
Only after weighing the federal protections you’d give up — income-driven repayment, deferment, and forgiveness programs — against the CFPB source above.
Does this account for a refinancing fee?
No — most student loan refinancing carries no closing costs, unlike a mortgage refinance, so none is modeled here.
