2021 NerdWallet Best-of Awards Winner for Best Student Loan Refinancing Overall
2021 NerdWallet Best-Of Awards Winner

Student Loan Refinance Total Interest Savings Calculator

Student loan refinancing can mean big savings. See how much total interest you would save by refinancing and what they could mean for your finances.

Step 1: Enter Current Loan Information

Loan Balance
Your remaining student loan debt to be repaid.
Interest Rate
The amount that the lender charges in interest, expressed as a percentage.
Current Monthly Payment
The total amount of your monthly student loan bill.
Add Multiple Loans to Calculate

Step 2: Enter New Loan Information

New Interest Rate
Your updated interest rate after refinancing student loans.
The length of time you have to repay your student loan debt in full.

Add Multiple Loans

Insert additional loan

Step 3: See How Much You Can Save


Lifetime Interest


New Monthly



Current Loan New Loan Savings
Rate 6.7% 4.2% 2.5%
Lifetime Interest $37,520 $22,210 $15,310
Monthly Payment $1,146 $1,018 $128

Ready to start saving on interest? See which refinance rates you’re eligible for with a quick comparison of the industry’s best lenders.

FAQs – Student Loan Refinance Calculator

Interest is the amount of money paid regularly at a particular rate for the use of money borrowed from a student loan lender, or for delaying the repayment of a student loan debt. In essence, it’s the “extra” money you have to pay back the lender for the opportunity to use their money to go to college (or pay off your existing student loans by refinancing).

Interest is calculated as simple daily interest for student loans. This generally means that each day, the outstanding principal balance is multiplied by the interest rate and divided by 365 days to calculate that day’s interest amount. For example, if you have a $10,000 loan and the interest rate is 7%, one day’s interest will be: ($10,000 x 0.07) / 365 = $1.92.

Our lenders generally determine interest rates by your credit score and the type of degree you have, among other criteria. Your loan amount usually does not directly affect the rates offered. Your annual income is factored into DTI (debt-to-income) calculations which may impact your interest rate. If you apply with a cosigner or refinance with your spouse, most lenders use the higher credit score to calculate your interest rate and save you even more on your student loans. Remember, you can check your estimated rate offers using our Compare Rates tool at any time with no impact on your credit score.

Student loan refinancing is a process where you take out a new student loan with a lender who pays off your old student loans. This essentially combines your existing student loans into one, with a new interest rate and the repayment term of your choice. Qualifying borrowers may be able to save significant amounts of money by lowering their interest rate.

Yes, it can – and in more than one way. If you get a lower interest rate and/or shorten your repayment term, you save on interest over the life of the loan. On the other hand, if you choose a longer repayment term, you get a lower monthly payment, which can free up room for other monthly expenses.

If you have high interest federal student loans or private student loans, getting a lower rate through a student loan refinance will reduce the total interest you pay (all else being equal). Not only would a lower rate save you money on interest costs, but it can also lower your monthly payment to make it more affordable.

Not with any of Purefy’s recommended lenders. All of Purefy’s best student loan refinance picks charge no origination fees or prepayment penalties.