Interest savings calculator
See what a lower rate actually saves you.
A lower rate can save you money two ways: less interest paid, or a faster payoff. You get both only if you keep your payment the same.
Lower your payment too, and the saving shrinks or disappears. That might be the right move if you need the breathing room. But if your goal is to get ahead, keep paying what you were paying, at the new rate, and more of it goes toward your balance.
Interest savings
Enter your balance, payment, current rate, and the new rate. We'll show what moving actually saves.
Keeping the payment at $250.00, the lower rate clears the balance in 3 yrs 3 mos instead of 4 yrs 2 mos. Drop the payment as well and the saving shrinks or disappears.
Estimates only, based on the figures you enter, not an offer of credit. Your actual rate and payment depend on the lender and your circumstances.
Reading your result
| Your result | What it means |
|---|---|
| Interest at your current rate | The estimated interest you would pay if you keep your current rate and payment. |
| Interest at the new rate | The estimated interest you would pay at the lower rate while keeping the same payment. |
| Estimated savings | The difference between the two interest totals. This shows what the lower rate could save you. |
The saving comes from paying off the balance faster, not from a smaller payment. Keep your payment the same after moving to the lower rate, and you clear the balance sooner instead of paying less each month. That's where the real saving comes from.