Student Loan Refinance Break-Even Calculator

Borrowers with private student loans (or federal loans they're willing to convert to private) who want to know whether refinancing to a lower rate actually pays off once any fees are counted.

Refinancing to a lower rate cuts your monthly payment and the total interest over the life of the loan. If there are upfront fees, the break-even point is the month your accumulated monthly savings finally cover those fees — after that, you're ahead.

Since most student-loan refinances charge no fees, break-even is often immediate; the real question is simply how much interest a lower rate saves.

Refinancing federal student loans into a private loan permanently gives up federal benefits — income-driven repayment, potential loan forgiveness, generous deferment and forbearance, and the payment pauses the government sometimes grants. A lower rate can be worth it, but only if you're confident you won't need those safety nets.

This assumes the new loan keeps your current remaining term and a fixed rate. Extending the term can lower the monthly payment while increasing total interest, and variable-rate offers can rise over time. Compare true total cost, not just the monthly payment.