Interest Rate Comparison
| Interest Rate | Monthly Payment | Monthly Diff $ | Monthly Diff % | Annual Diff $ |
|---|
**Click on any row to see the full amortization schedule for that rate.
Understanding The Interest Rate Comparison Table
This interactive tool helps you quickly see how different interest rates impact your monthly & yearly payments so you can make the best decision for your goals & budget.
How This Calculator Works
Our mortgage calculator allows you to:
- Compare payment scenarios
Enter your loan amount, the base interest rate, and the term to see 8 variations of your monthly payments. 4 rates will beabove and 4 below the base rate.
- Visualize rate impacts
See how incremental changes to interest rates affect your payments
- View detailed comparisons
Compare monthly and annual differences at various interest rates
- Share Your Calculations
Copy the URL to share your unique calculations with family, friends or financial professionals.
Key Features
The calculator highlights:
- Base rate comparison
Shows how payments change with each increment from your selected base rate
- Monthly payment differences
Displays both dollar amount and percentage changes for easy comparison
- Annual impact
Calculates yearly payment differences to understand long-term effects
- Color-coded results
Green indicates savings, red shows increased costs compared to your base rate
Mortgage Calculator Financial Theory
This calculator uses the standard mortgage amortization formula to determine your monthly payments:
Hover over each variable in the formula below to see what it represents.
M = P [ r(1 + r)^n ] / [ (1 + r)^n - 1 ]
Where:
M = Monthly payment
P = Principal loan amount
r = Monthly interest rate (annual rate divided by 12)
n = Number of payments (loan term in years × 12)
Interest Rate Impact
Even small changes in interest rates can significantly impact your monthly payment and total loan cost. For example, on a $300,000 30-year loan, a 0.5% rate increase can add approximately $90 to your monthly payment and over $30,000 to your total loan cost.
Amortization Principles
Mortgage payments follow an amortization schedule where early payments are primarily interest, while later payments apply more toward principal. Higher interest rates mean paying more interest before building equity in your home.
Practical Applications
This tool helps evaluate refinancing opportunities by:
- Calculating potential savings
Determine if current interest rates justify refinancing costs
- Comparing loan options
Analyze if rate-and-term or cash-out refinancing makes financial sense
- Determining break-even points
See how long it takes for monthly savings to offset closing costs
Integrate mortgage knowledge into your overall financial strategy:
- Budgeting
Plan for housing costs as a percentage of your income
- Tax planning
Understand mortgage interest deduction implications
- Investment allocation
Decide between extra mortgage payments or other investments
- Retirement planning
Project housing costs throughout different life stages
Mortgage Rate Sensitivity Analysis
The comparison table in our calculator demonstrates rate sensitivity - how changes in interest rates affect your financial outcome. For a $300,000, 30-year mortgage, each 0.125% change in rate can impact your monthly payment by approximately $20-25. Over the life of the loan, even small rate differences compound significantly.
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True Loan Cost Calculator
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