Interest Rate Impact Calculator

See how a change in interest rates affects your monthly payments and total cost. Pre-filled with the current 30-year mortgage rate from FRED.

At 6.46%

$2,203.04/mo

Total interest: $443,094

At 7.46%

$2,437.67/mo

Total interest: $527,562

Monthly Difference

+$234.63

Lifetime: +$84,468

How Interest Rates Affect Your Money

When the Federal Reserve raises or lowers its target rate, the effects ripple through the entire economy. Mortgage rates, auto loan rates, credit card APRs, and savings account yields all respond, though not always at the same pace or magnitude.

For borrowers, even a small rate change can significantly affect total cost over the life of a loan. On a $350,000 mortgage, a 1 percentage point increase typically adds $200+ to monthly payments and tens of thousands in total interest. For savers, higher rates mean better returns on deposits.

The current 30-year fixed mortgage rate is 6.46%, sourced from FRED. Rates change frequently based on Federal Reserve policy, inflation expectations, and bond market conditions.

Disclaimer

This calculator provides simplified estimates for educational purposes. Actual payments depend on credit score, down payment, fees, taxes, insurance, and lender-specific terms. The pre-filled rate is the current national average 30-year fixed mortgage rate from Freddie Mac via FRED. Your inputs stay in your browser and are not stored or transmitted.