How to use this calculator
This calculator answers: What is my fastest, cheapest payoff path — and does refinancing beat it?
Why this matters: Refinancing federal loans means giving up protections you can’t get back — and the wrong payoff order wastes real money.
- Add up to 5 loans with Balance ($), Rate (%), and Min. payment ($); set “Extra payment per month ($)” and, to test a refinance, the new refinance rate and loan term.
- Everything recalculates live as you type — no button needed.
- Read “Your payoff plan”: your current path vs minimums-only vs refinancing — the refinance shown two ways, as the lender’s required payments and with the same aggressive budget as your current plan. Try dropping the refi rate by 1 point while keeping the budget the same to see what the lower rate alone buys you.
Your loans (up to 5)
Refinance comparison — optional
What if you refinanced the total balance into one private loan? Warning: refinancing federal loans gives up income-driven repayment, forbearance options, and forgiveness programs — permanently.
How the comparison works
- Payoff simulation: each month, interest accrues on every loan at APR ÷ 12, all minimums are paid, then your extra payment — plus minimums freed from loans already cleared — targets one loan: highest rate (avalanche) or smallest balance (snowball).
- Versus minimums: the same loans simulated with $0 extra, so the interest and months saved are the pure value of your extra payments.
- Refinance (required payments): your total balance amortized at the new rate over the new term, using the standard payment formula. Compared against your chosen strategy's lifetime interest.
- Refinance (same aggressive budget): your total balance at the new rate, but paid with the same monthly budget as your current plan (minimums + extra). This isolates the pure rate advantage — what the lower rate saves you if you keep paying just as aggressively instead of dropping to the smaller required payment.
- The federal tradeoff: this math can't price income-driven repayment, deferment, or forgiveness. If those protections matter to you, a lower private rate may not be worth the trade.
Frequently asked questions
Avalanche or snowball for student loans?
Avalanche (highest rate first) costs less in total interest; snowball (smallest balance first) clears a loan sooner, which helps motivation. With federal loans the rate spread is often small, so the dollar difference between the two can be modest.
Should I refinance federal student loans?
Refinancing federal loans into a private loan can lower your rate, but it permanently gives up federal protections: income-driven repayment, deferment/forbearance options, and loan forgiveness programs. Compare the rate savings against the value of those safety nets for your situation.
Why does the refinance show two comparisons?
The required-payments case shows the lender's offer as quoted — usually a smaller payment over a longer term. The same-budget case keeps your current monthly total (minimums + extra) and applies it to the refinanced loan, so you see what the lower rate alone saves you if you keep paying just as aggressively. Most borrowers compare only the smaller payment; the same-budget number is the fairer measure of the rate advantage.
What does the negative amortization warning mean?
A loan's minimum payment is smaller than one month of interest, so the balance grows even while you pay. Income-driven plans can do this by design (with possible interest subsidies); otherwise the loan never clears at that payment.
Does extra payment order really matter?
Yes, when rates differ. Every extra dollar aimed at a 7% loan instead of a 4% loan saves the 3-point spread for the remaining life of the loan. When rates are nearly identical, order barely matters.
How accurate is this?
It uses monthly compounding at APR/12 with fixed rates and minimums. Federal loans have quirks — capitalized interest, IDR recertification, servicer-specific payment application — so treat results as planning estimates.
Related calculators
- Avalanche vs Snowball — pick the payoff order that gets you debt-free fastest.
- Debt vs Invest — guaranteed debt savings vs. expected investment growth.
- Take-Home Pay — what actually lands in your bank account each paycheck.
Last updated: September 27, 2026