Mortgage Rate Change Calculator
Compare the same loan at two interest rates. The calculator shows how much the monthly payment, the yearly payments, and the total interest differ between them.
Utility
Compare two rates
The new rate lowers the payment.
Monthly principal and interest: $2,770 (7.40%) → $2,702 (7.15%)
Monthly payment change
-$68
Yearly payment change
-$815
Total interest change
-$24,441
This is a simple fixed-rate comparison. Taxes, insurance, fees, credit profile, and lender terms are not included.
How it is calculated
Both rates use the same fixed-rate amortization formula with the same loan amount and term. The difference is the payment at the new rate minus the payment at the current rate, so a negative number means a lower payment. The yearly difference is twelve times the monthly difference.
A worked example
For a $400,000 loan over 30 years, moving from 6.50% to 6.25% changes the monthly principal-and-interest payment from about $2,528 to about $2,463, a difference of about $65 per month.
What this does not model
This compares one fixed rate held for the whole term. It does not model adjustable rates, closing or refinancing costs, points, taxes, insurance, or how long a loan is kept.