Laurel Road Student Loan Refinance Calculator

This calculator estimates the monthly payment and total interest on a refinanced student loan using the balance, APR, and repayment term you enter. It shows the result under a fixed-rate, monthly-payment assumption; it does not quote Laurel Road’s rates, determine eligibility, or include lender-specific fees.

Formula

The calculator uses the standard fixed-payment loan formula. It converts the annual percentage rate into a monthly rate, calculates a level payment over the loan term, rounds that payment to cents, and estimates total interest from the rounded payment.

• p = refinanced principal or loan balance, in dollars.
• apr = annual percentage rate, entered as a percentage per year.
• r = monthly rate, calculated as apr ÷ 1,200.
• n = number of monthly payments, calculated as years × 12.
• pmt = monthly payment in dollars: round[p × r ÷ (1 − (1 + r)⁻ⁿ), 2].
• int = estimated total interest in dollars: pmt × n − p.

The expression assumes payments are level and made monthly. Total interest is an estimate based on the displayed payment multiplied by the number of months, less the starting balance. Actual final-payment handling can differ because lenders may calculate interest daily, adjust payment dates, or round each installment.

Worked Example

Using the calculator’s defaults—$20,000 principal, 8% APR, and a five-year term—the monthly rate is 8 ÷ 1,200 = 0.0066667, and the term is 5 × 12 = 60 payments.

1. Apply the payment formula: $20,000 × 0.0066667 ÷ [1 − (1.0066667)⁻⁶⁰].
2. Round the result to cents: the estimated monthly payment is $405.53.
3. Multiply the rounded payment by 60: $405.53 × 60 = $24,331.80.
4. Subtract the original balance: $24,331.80 − $20,000 = $4,331.80 estimated total interest.

The values are illustrative inputs, not a Laurel Road offer or a prediction of a borrower’s actual payment.

Assumptions

• The APR is fixed for the full repayment term.
• Payments are equal monthly installments, with the first payment one month after repayment begins.
• Interest accrues monthly using the APR divided by 12.
• The estimate excludes origination or other fees, taxes, insurance, and any charges or credits not entered as principal.
• It does not model variable rates, payment pauses, extra payments, late payments, capitalization events, or changes in the payment schedule.

What Laurel Road Student Loan Refinancing Means

Laurel Road is a financial-services brand associated with student loan refinancing. Refinancing generally means taking out a new private loan to repay one or more existing education loans. The new loan has its own rate, repayment term, payment schedule, and contract; the old balances are paid off if the transaction is completed as intended. The calculator above describes the math of a single fixed-rate loan, not the details of a particular Laurel Road product.

Whether a person can apply, what terms may be offered, what loans qualify, and whether a particular loan can be refinanced are matters to verify directly with the lender. Product terms and application criteria can change. Do not treat the defaults here as current rates, eligibility limits, or a lender quote.

How to Use the Estimate When Comparing Terms

Enter the balance you expect the new loan to cover, the APR shown in a lender’s written offer, and the proposed repayment term. For a precise comparison, use figures from the same date and include any financed fees in the principal only if the offer adds them to the balance.

• Compare monthly payments: A longer term commonly spreads repayment over more installments, which can lower the calculated installment while increasing the time interest accrues.
• Compare total interest: The interest estimate gives a different perspective from the monthly payment alone. It does not include fees or other contract costs.
• Keep the APR and rate type clear: Use the offered APR, not a monthly rate. This calculator assumes the entered APR remains fixed; it does not model a variable rate that can change.
• Check the payoff balance: The current statement balance may not equal the amount needed to pay off a loan on a future date. Ask the current servicer for a payoff figure when applicable.

For example, if two offers cover the same balance but use different terms, enter each offer separately and compare both the installment and total interest. A lower monthly figure by itself does not establish that the total borrowing cost is lower.

Important Considerations and Limits

Refinancing education debt can change the lender, contract, rate structure, repayment term, and available borrower options. The arithmetic cannot determine which protections or benefits may apply to an existing loan, or what may change under a new contract. Before acting, read the actual loan disclosures and confirm any consequences for the specific loans involved with the relevant servicer or program. This page does not explain or model government repayment, forgiveness, or tax rules.

Common calculation mistakes include entering 8 instead of 0.08 in a formula that expects a decimal rate, entering the APR as a monthly rate, and comparing loans with different balances or terms as if they were identical. This calculator expects APR as a percentage—for example, enter 8 for 8%—and years as a number of years. It does not account for payment timing differences, accrued interest before the first installment, or a final payment that differs from the regular installment.

Frequently Asked Questions

Does this calculator show Laurel Road’s current refinance rate?
No. Enter an APR from a current written offer or other lender information. The sample 8% is only a mathematical example and is not a quoted rate.

Can I refinance federal and private student loans?
Which loans may be eligible depends on the lender’s current product terms and application review. Confirm directly with the lender, and understand any effects on the existing loans before proceeding.

Why can a longer term lower my payment but increase total interest?
A longer term divides repayment into more monthly installments, which may reduce each installment. It also leaves the balance outstanding for more time, so total interest can be higher under the same APR.

Does the estimate include fees?
No. It models principal, APR, and term only. Check the lender’s disclosures for fees or other costs and include a fee in the input balance only if it is actually financed.

Is the monthly payment guaranteed to match a lender’s bill?
No. The result is an estimate based on a fixed rate, monthly compounding, and rounded level payments. Contract terms, dates, rounding, and account activity can affect the actual amount.

This result is an estimate; the lender’s disclosure gives the exact figures.

Related

• Loan Balance Formula: Calculate What You Still Owe
• Loan Balance Confirmation: What It Shows
• Loan Balance Equation: Formula and Calculator

in p | Loan amount | $ | 20000 | 1 | 100000000
in apr | Interest rate (APR) | % | 8 | 0.01 | 100
in yrs | Loan term | years | 5 | 0.0833 | 50
out pmt | Monthly payment | $ | round(p * (apr / 1200) / (1 - (1 + apr / 1200) ^ -(yrs * 12)), 2) | 2
out int | Total interest | $ | pmt * yrs * 12 - p | 2