Interest Savings Calculator
Discover how much you can save with extra payments, lower rates, or shorter terms.
Calculate Your Interest Savings
Enter your loan details and savings strategies to see potential savings
Understanding Interest Savings
How Extra Payments Work
Extra payments go directly to your principal balance, reducing the amount that accrues interest. This creates a compounding effect - you save interest not just on the extra payment, but on all future interest that would have accrued on that amount.
The Power of Bi-Weekly Payments
- Pay half your monthly payment every 2 weeks
- Results in 26 half-payments = 13 monthly payments per year
- That extra payment goes entirely to principal
- Can shave 4-6 years off a 30-year mortgage
When to Refinance
- Rate is at least 0.5-1% lower than current rate
- You plan to stay in home long enough to recoup closing costs
- Your credit score has improved significantly
- You want to change from ARM to fixed rate
Combining Strategies
- Multiple strategies can be combined for maximum savings
- Even if you can't refinance, extra payments help
- Start small - even $25-50 extra per month adds up
- Apply windfalls (bonuses, tax refunds) to principal