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FICO Loan Savings Calculator
Your loan
The APR fields fill in automatically from the typical rate table below when you change a band. Edit either APR to use a quote from your own lender.
Example: a $300,000 loan over 30 years at 7.75% (FICO 580–669) costs $2,149.24 a month and $473,725.23 in total interest; at 5.75% (FICO 800–850) it costs $1,750.72 a month and $330,258.68 in total interest — a saving of $398.52 a month and $143,466.54 over the life of the loan.
Behind the numbers
How a better FICO score saves you money
Lenders charge lower interest to borrowers with higher FICO scores, because they see them as less likely to miss payments. A lower APR means a lower monthly payment on the same loan amount — and much less total interest over a long loan. This calculator works out the monthly payment at your current band and at an improved band, using the standard loan payment formula, and shows the difference.
Monthly payment M = P · r(1+r)n ÷ ((1+r)n − 1), where P is the loan amount, r is the monthly rate (APR ÷ 12) and n is the number of payments (years × 12). Total interest = M × n − P. Worked example: P = $300,000, 30 years, 7.75% APR. r = 0.0775 ÷ 12 = 0.006458, n = 360, so M = 300,000 × 0.006458 × 1.006458360 ÷ (1.006458360 − 1) = $2,149.24 a month, and total interest = 2,149.24 × 360 − 300,000 = $473,725.23. At 5.75% the payment is $1,750.72 a month and total interest is $330,258.68 — a saving of $398.52 a month and $143,466.54 over 30 years.
Typical rates
What each FICO band typically pays
| FICO band | Typical APR | Monthly payment | Total interest |
|---|---|---|---|
| 300–579 (Poor) | 9.25% | $2,468.03 | $588,489.46 |
| 580–669 (Fair) | 7.75% | $2,149.24 | $473,725.23 |
| 670–739 (Good) | 6.75% | $1,945.79 | $400,485.94 |
| 740–799 (Very good) | 6.25% | $1,847.15 | $364,974.58 |
| 800–850 (Excellent) | 5.75% | $1,750.72 | $330,258.68 |
Monthly payment and total interest are for a $300,000 loan over 30 years. These are typical rates for a 30-year mortgage — your actual rate depends on the lender, the loan type and more than your FICO band alone. Override the APR fields above with your real quotes for an exact comparison.
Raise your score before you borrow.
Pay every bill on time — payment history is the biggest part of a FICO score, and even one late payment can cost you a band.
Pay down credit card balances so you use less than 30% of your available credit; lower card use usually lifts a score within a month or two.
Do not open new credit or close old cards in the months before you apply — new accounts and shorter histories can both pull your score down.
Check your credit reports for errors and dispute any mistakes; a wrong late payment or an account that is not yours can cost real money on a mortgage.
Good to know
Your FICO savings questions, answered.
How much can a better FICO score save on a mortgage?
On a $300,000, 30-year loan, moving from 580–669 (7.75%) to 800–850 (5.75%) saves $398.52 a month and $143,466.54 in total interest, using the typical rates on this page. Your actual saving depends on the quotes your lender gives you.
Are these the real rates I will get?
No — the rates in the table are typical illustrative APRs for a 30-year mortgage. Lenders price loans on more than a FICO band, including the loan type, the down payment and your full credit history, so use the APR override fields to enter the real quotes you receive.
What is a good FICO score for a mortgage?
670 and above is generally considered good, 740 and above very good, and 800 and above excellent. Most lenders offer their best rates to scores of 740 or higher, which is why the jump from the 670–739 band to the 740–799 band is worth about $98.64 a month on a $300,000 loan.
Does the calculator include taxes and insurance?
No. It compares principal and interest only. Property taxes, homeowners insurance and PMI are separate costs that do not change with your FICO band in the same way, so add them to your monthly payment yourself when you budget.