Interest Savings Calculator
Calculate how much interest you can save by making extra payments, refinancing to a lower rate, or paying off debt faster.
Current Debt Details
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Interest Savings
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What If You Paid More?
| Extra Payment | Payoff Time | Interest Saved |
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Ways to Save on Interest
- Make extra payments: Even small amounts reduce principal faster
- Refinance to lower rate: Shop for better rates on loans and mortgages
- Pay biweekly: 26 half-payments = 13 full payments per year
- Use windfalls: Apply tax refunds, bonuses to principal
- Round up payments: Pay $300 instead of $275
The Power of Extra Payments
On a $200,000 mortgage at 6% for 30 years:
- Regular payment: $1,199/month
- Total interest: $231,676
- With extra $100/month: Save $48,000 in interest, pay off 5 years early!
Frequently Asked Questions
Compare the interest rate on your debt to expected investment returns. Paying off high-interest debt (credit cards, personal loans) is usually better than investing. For low-rate debt (mortgages, student loans), investing may yield higher returns.
It depends on your loan balance and closing costs. Generally, a 1% rate reduction is worth pursuing on larger loans (mortgages) or if you plan to keep the loan for several years. Calculate your break-even point to decide.
Mathematically, paying as early as possible saves the most interest. If you have a lump sum, apply it now. If not, consistent extra payments still make a significant impact.