myUSFinance

1. Enter your Current Loan Balance ($) — This value represents your current loan balance
2. Enter your Current Interest Rate (%) — This value represents your current interest rate
3. Enter your Remaining Loan Term (years) — This value represents your remaining loan term (years
4. Enter your Refinancing Interest Rate (%) — This value represents your refinancing interest rate
5. Enter your Refinancing Term (years) — This value represents your refinancing term (years
6. Click Calculate — Review your results in the output section below the form. The calculator instantly computes all values based on your inputs.
7. Adjust and Compare — Modify any input to see how changes affect the result. Try different scenarios to find the optimal approach for your situation.

All calculations are performed instantly in your browser. Your data is never sent to any server or stored anywhere — your financial information remains completely private.

Where:

• Old Payment — Current monthly student loan payment
• New Payment — Monthly payment after refinancing
• Old Rate — Current weighted average interest rate across all loans
• New Rate — Refinanced interest rate offered by the new lender
• Old Remaining — Months remaining on current loan(s)
• New Term — New loan term in months

Worked Example

Current: $40,000 at 6.8% average, $460/month, 108 months remaining. Refinance: $40,000 at 4.5%, 96 months. New payment: $498. Total remaining interest at old rate: $9,680. Total interest at new rate: $7,808. Net savings: $1,872 despite higher monthly payment.

Limitations and Assumptions

Refinancing federal loans into private loans means losing access to income-driven repayment plans, Public Service Loan Forgiveness, and federal forbearance/deferment options. Only refinance federal loans if you have stable income, will not pursue PSLF, and can secure a significantly lower rate. Refinancing private loans has no such trade-offs and should be pursued whenever a lower rate is available.

Understanding the following key concepts will help you interpret your results and make better financial decisions:

• Principal — The initial amount of money involved in the calculation, whether it is a starting balance, loan amount, or investment.
• Interest Rate — The percentage charged or earned on the principal amount, typically expressed as an annual rate (APR). This rate determines how quickly your money grows or how much borrowing costs.
• Compounding — The process of earning interest on previously earned interest. More frequent compounding (daily vs. monthly vs. annually) results in higher effective returns or costs.
• Time Horizon — The length of time over which the calculation applies. Longer time horizons amplify the effects of compounding and small differences in rates.
• Present Value vs. Future Value — Present value is what money is worth today; future value is what it will be worth at a specific point in the future, accounting for growth or inflation.

These concepts form the foundation of virtually all financial calculations. Understanding how they interact helps you evaluate any financial product or decision with confidence.

Let's walk through a practical example using this calculator.

Scenario: Sarah is considering a $25,000 personal loan to consolidate credit card debt. She has received offers from two lenders:

• Lender A: 8.5% APR, 36-month term — Monthly payment: $789, Total interest: $3,404
• Lender B: 7.2% APR, 48-month term — Monthly payment: $601, Total interest: $3,848

While Lender B offers a lower monthly payment ($188 less per month), Sarah would pay $444 more in total interest over the life of the loan. If her budget can handle the higher payment, Lender A saves money overall. However, if cash flow is tight, Lender B provides more breathing room.

Sarah decides to go with Lender A's rate but asks about a 48-month option: 8.5% APR for 48 months gives her a $615 monthly payment with $4,520 in total interest. She settles on the 36-month term and plans to apply the $188 monthly savings compared to Lender B toward her emergency fund.