Free Alabama Home Mortgage Loan Calculator
Alabama Mortgage Calculator
By SoFi Editors | Updated September 22, 2025
Home buying can seem overwhelming. Our mortgage calculator can help. By inputting just a few simple numbers, you can find out how much house you can afford, which is invaluable information during your home search. Let’s take a closer look.
Key Points
• This Alabama mortgage calculator helps homebuyers determine how much house they can afford by entering a few simple numbers.
• The calculator requires inputs such as home price, down payment amount, loan term, interest rate, and property tax rate to estimate monthly mortgage payments.
• Lenders prefer mortgage payments to be no more than 28% of a homebuyer’s gross monthly income.
• Mortgage payments typically include principal and interest, and sometimes they may also cover property taxes and homeowners insurance. Private mortgage insurance (PMI) or homeowners association (HOA) fees may be included, too, if they’re relevant.
• There are a variety of ways you may be able to reduce mortgage payments, including mortgage recasting, appealing high property taxes, and refinancing to a lower rate, among others.
• First-time homebuyers in Alabama can access assistance programs through the Alabama Housing Finance Authority.
Alabama Mortgage Calculator
Calculator Definitions
• Home price: This is the purchase price you’ve agreed to with the home’s seller. This figure may differ from the listing price and from your first offer.
• Down payment: The down payment is the amount you pay upfront, typically expressed as a percentage of the total purchase price. Most buyers put down between 3% and 20%. Depending on what’s available in your area, down payment assistance programs may assist you with this expense.
• Loan term: This is the length of time you have to repay your mortgage, usually 15 or 30 years. A longer term means smaller monthly payments, but you’ll pay more interest over the life of the loan. A shorter term requires higher payments but costs less overall.
• Interest rate: This is essentially the cost of borrowing money from a lender, expressed as a percentage of the loan amount.
• Annual property tax: This is tax levied by local governments on land and buildings, and it’s expressed as a percentage of the property’s assessed value. While property taxes vary among counties, in Alabama, the effective property tax overall is 0.36%, which is the 49th lowest in the country. Find your specific property tax rate by searching online for the town, county, or ZIP code where the property is located and “effective property tax rate.”
• Monthly payment: This is the amount you pay to your lender each month. It includes money toward the principal loan amount and interest, but also may include funds toward your property tax, which this calculator can allow for if you enter your tax rate. Your payment might also potentially cover homeowners insurance. homeowners association (HOA) fees, and private mortgage insurance (PMI) if your equity level is under 20%.
• Interest paid: This is the total amount of interest you pay over the length of the loan.
• Total loan cost: This is the entire amount that you pay for the loan, encompassing both the original principal and the interest charges over the lifespan of the loan.
How to Use the Alabama Mortgage Calculator
Welcome to SoFi’s free mortgage calculator for Alabama. Here’s a step-by-step explanation of how to use this helpful tool. It won’t affect your credit score, and it takes only minutes.
Step 1: Enter Your Home Price
Input the final home price that you and the seller agreed you will pay for the property.
Step 2: Select a Down Payment Amount
Choose the percentage of the home price that you want to pay upfront. Bear in mind that different types of mortgage loans have different requirements.
Step 3: Choose a Loan Term
Select the length of time over which you want to repay your home loan. Most mortgages carry a 30-year or 15-year term.
Step 4: Enter an Interest Rate
Input the interest rate that you’re hoping for to the second or third decimal point — e.g., 6.74%.
Step 5: Add Your Annual Property Tax Rate
Enter the percentage that represents what property tax is each year in the area where the property is located. For example, if the rate is 0.36%, you’d enter 0.36.
Benefits of Using a Mortgage Payment Calculator
Choosing a mortgage can be daunting, especially if you’re buying your first home. A mortgage calculator can help you in several ways, even before you start the mortgage preapproval process.
First of all, by entering a few factors like the amount, length, and interest rate of a loan, you can calculate what your monthly payments would be. But you can also use it to compare costs. For instance, you can try different interest rates to see what impact they have on monthly payments and overall cost. Or you can compare a 30-year term with a 15-year term to see which might make more sense for you. And you can see how the size of your down payment might influence your payments.
In all these ways, this free tool can help you understand the affordability of different loans and navigate mortgage options effectively as you search for your dream home.
Deciding How Much House You Can Afford in Alabama
The good news is that in Alabama, the median list price for a home is about $328,500, as of late 2025, meaning you’re unlikely to need a jumbo loan. Lenders usually prefer that your mortgage payments are no more than 28% of your gross monthly income. Using this rubric, if you buy a $328,500 home with a 20% down payment ($65,700) and a 30-year mortgage at a 7.00% interest rate, your monthly payment would be $1,748 and you’d need a minimum annual income of about $75,000.
This example assumes you have no other substantial debts. If you’re paying down student loans, an auto loan, or credit card bills, your buying power would be reduced. You’ll also need to budget for added housing costs like property tax, homeowners insurance, and possibly HOA fees.
It’s also worth trying a home affordability calculator to get an estimate of how much house your income will let you afford.
Recommended: Average Monthly Expenses for One Person
Current mortgage rates by state.
Compare current home interest rates by state and find a mortgage rate that suits your financial goals.
Select a alabama to view current rates:
Components of a Mortgage Payment
Mortgage principal and interest are the core costs in your mortgage payment. This calculator can also factor in your property taxes, which are likely to be part of your total monthly payment obligation, too. Other elements that might be included in your monthly payment are your homeowners insurance, private mortgage insurance (PMI), and homeowners association (HOA) fees.
If you’re considering a loan backed by the Federal Housing Administration (FHA), an FHA mortgage calculator will automatically factor in your ongoing monthly mortgage insurance premium, providing a more comprehensive view of your total monthly housing costs and financial obligations.
Similarly, if you’re taking out a loan backed by the Veterans Administration (VA), a VA mortgage calculator can take your VA funding fee into account.
Cost of Living in Alabama
The cost of living in your area can profoundly affect how much you can afford. With an overall cost of living more than 11% below the national average, Alabama is generally one of the best affordable places in the U.S.
Below is a breakdown of the specific cost of living in Alabama’s major metropolitan areas, according to the Council for Community and Economic Research’s Cost of Living Index (COLI). The COLI is measured on a scale on which 100 is the national average, and as you can see, all of these cities have lower costs of living.
| Alabama Cities’ Cost-of-Living Stats | |
|---|---|
| Anniston-Calhoun County | 84.8 |
| Auburn-Opelika | 92.7 |
| Birmingham | 91.8 |
| Decatur-Hartselle | 84.3 |
| Dothan | 87.3 |
| Florence | 83.5 |
| Huntsville | 90;8 |
| Montgomery | 88.8 |
Recommended: The Cost of Living in the U.S.
Run the numbers on your home loan.
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Mortgage calculator
Punch in your home loan amount and a new interest rate, and we’ll estimate your payoff date.
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Down payment calculator
Enter a few details about your home loan and we’ll provide your monthly mortgage payment.
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Home affordability calculator
Provide us with a few details and see how much you can afford to spend on a home purchase.
Using the free calculators is for informational purposes only, does not constitute an offer to receive a loan, and will not solicit a loan offer. Any payments shown depend on the accuracy of the information provided.
Tips on Reducing Your Mortgage Payment
If you’ve explored your options with the mortgage calculator and are concerned about your ability to afford your desired home, don’t despair. There are some steps you can take that may help reduce your payment.
• Dropping private mortgage insurance (PMI), if you have it, is an option once you’ve reached 20% equity in your home. You will need to make the request to your lender at this point, but once you reach 22%, PMI should automatically be removed.
• Mortgage recasting involves paying a large lump sum toward your principal and then asking your lender to reamortize your loan, while keeping the interest rate and term the same, resulting in lower payments. If you get a windfall, this could be a good way to spend it.
• Appeal overly high property taxes by contacting your local tax authority. Be prepared to show evidence that your home is valued too high, such as comparable homes in your area that were assessed at lower amounts.
• Refinancing to a lower rate or longer loan term can potentially reduce your monthly payments. Remember that a mortgage refinance usually requires you to pay closing costs again, however.
• Explore down payment assistance options, because the larger your down payment, the lower your monthly payments are likely to be. Especially if the assistance is in the form of a grant, these options can be very helpful and potentially let you avoid PMI.
• Shop for cheaper homeowners insurance. This can include finding a new insurer with more competitive rates, raising your deductible, or bundling your insurance policies to get a discount.
Alabama First-Time Homebuyer Assistance Programs
If you’re considering buying your first home, there may be assistance available to help you achieve your dream. And if you’re a repeat buyer but haven’t owned a primary residence within three years, you may also be eligible. The Alabama Housing FInance Authority offers a variety of programs which provide mortgages with competitive interest rates, as well as down payment and closing costs assistance to help aspiring homebuyers cover the initial costs of purchasing a home. These programs can make homeownership more accessible and substantially reduce the financial burdens often associated with entering the housing market.
Recommended: Do You Qualify as a First-Time Homebuyer?
The Takeaway
If you’re shopping for a home in Alabama, a mortgage calculator is an important tool. Using one can help you estimate your monthly payments and total interest costs for different loans so that you can make informed decisions about how much house you can realistically afford. This will let you better plan your overall financial future and successfully navigate the complexities of homeownership.
Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.
FAQ
What is a mortgage payment?
A mortgage payment is the amount of money you pay your mortgage servicer every month, and it typically goes toward your home loan principal and interest, though it may also cover property taxes, homeowners insurance costs, private mortgage insurance (PMI), and/or homeowners association (HOA) fees if required by your lender.
What are principal and interest on a mortgage loan?
The principal is the amount of money you initially borrowed for your mortgage, while the interest is what the lender charges you to borrow that principal.
Should I choose a 30-year or 15-year mortgage term?
If you can comfortably afford the payments on a 15-year mortgage and you already have retirement savings and an emergency fund, the shorter term will save you money, since you will be paying less in overall interest costs. A 30-year mortgage will cost you less per month, but will last twice as long and cost significantly more in total interest.
How can I get a lower mortgage interest rate?
To secure a lower mortgage interest rate, you can improve your credit score, shop around for the best rates, and/or negotiate terms with potential lenders.
SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.
SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.
†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
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Frequently Asked Questions
How do I qualify for the 6-month 4.30% APY boost?
To qualify, you’ll need to (1) enroll by clicking the special link we sent you by 10/24, and (2) make a single qualifying transaction of $7K or more into your SoFi Checking & Savings account – which SoFi must receive by 12/24. Once your qualifying transaction posts, your savings APY will automatically increase by 0.70% for 6 months, as long as you maintain SoFi Plus status during this period. Note: make sure you click on the link BEFORE you transfer funds.
Which “Qualifying Transaction” deposit types are eligible?
The following are eligible deposit types. Make sure you make a single deposit/transfer of $7K or more.
• ACH transfer (including direct deposit)
• Inbound wire transfers
• Mobile check deposit.
The following are not eligible funding sources:
• Transfers between an account holder’s SoFi Checking account, SoFi Savings account, Vaults and/or SoFi Invest accounts
• Peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder)
• Interest payments or bonuses
• Credits, reversals, and refunds from SoFi Bank or from a merchant
• Instant funding to your SoFi Bank Debit Card
• Push payments to your SoFi Bank Debit Card
• Cash deposits
How do I enroll for the campaign?
It’s simple—just click the special link we send you by 10/24. You’ll be taken to the “Transfer Money” page, and by logging in and visiting that page, you’re automatically enrolled. Note: make sure you click on the link BEFORE you transfer funds.
Who is eligible for the campaign?
This offer is available only to existing members who received a direct communication from SoFi. If you didn’t receive the offer from SoFi, you’re NOT currently eligible for this campaign.
Do I need to do anything after I make my “Qualifying Transaction”?
Nope! Once you click the link and make your qualifying transaction during the required periods, you’re automatically enrolled. Your boosted rate will be applied to your savings balance within a few days and last for 6 months, as long as you remain in SoFi Plus.
When will I see the boosted rate?
After you click the link, make your qualifying transaction (SoFi must receive it by 12/24), and your deposit posts, you’ll start earning the boosted rate on your savings balance. The boosted rate is effective for 6 months from that date, as long as you maintain SoFi Plus.
What happens after the 6-month boost ends?
After 6 months, your APY will return to SoFi’s then-current variable rate for SoFi Plus members. You’ll still continue earning a highly competitive APY—no action required on your end.
Terms and Conditions
Participating SoFi Plus Members can earn up to 4.30% Annual Percentage Yield (APY) with a limited-time 0.70% APY Boost to the current Savings APY of 3.60% (rate current as of 11/12/25). Rates are variable and subject to change.
SoFi Targeted Balances APY Boost Promotion Terms
The following terms and conditions (the “Terms”) apply to the SoFi Targeted Balances APY Boost Promotion (the “Promotion”), which allows Eligible Members (as defined below) to receive a 0.70% annual percentage yield (“APY”) boost to the APY earned on their SoFi Savings account (the “0.70% APY Boost”) for up to 6 months by completing the required actions described below.
Promotion Period:
10/10/25 at 12:00 a.m. E.T. – 12/24/25 at 11:59 p.m. E.T.
Who is eligible for the Promotion?
This Promotion is available by invitation only. It is open to existing SoFi Checking and Savings members who are enrolled in SoFi Plus as of 10/3/2025 and who have received a targeted invitation for this Promotion (“Eligible Members”) from SoFi. Members who did not receive a direct promotional communication from SoFi for this offer are not eligible.
What qualifying activities do I need to complete to earn the 0.70% APY Boost?
In order to receive the 0.70% APY Boost, you must complete all of the following qualifying activities:
1. Enroll in the Promotion between 10/10/25 and 10/24/25 by clicking the unique link in your targeted promotional communication from SoFi and logging into your SoFi account. You must click and enroll by 10/24/25 11:59 PM ET.
2. Make a single Qualifying Transaction (as defined below) of $7,000 or more into your SoFi Checking or Savings account. The Qualifying Transaction must be received by SoFi and post to your account no later than 12/24/25 11:59 PM ET.
3. After making your single Qualifying Transaction, maintain your SoFi Plus status, for the entire 6-month Boost Period (as defined below).
What is a “Qualifying Transaction”
Qualifying Transaction means a single deposit into your SoFi Checking or Savings account from an external source via one of the following eligible methods: (i) ACH transfers (ii) inbound wire transfers, and (iii) mobile check deposits (a “Qualifying Transaction”).
Qualifying Transactions DO NOT include: (i) transfers between an account holder’s SoFi Checking account, SoFi Savings account, Vaults and/or SoFi Invest accounts; (ii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder); (iii) interest payments; (iv) bonuses issued by SoFi Bank or its affiliates;(v) credits, reversals, and refunds from SoFi Bank or from a merchant; (vi) instant funding to your SoFi Bank Debit Card; (vii) push payments to your SoFi Bank Debit Card; and (viii) cash deposits. SoFi shall, in its sole discretion, determine whether a transaction meets the definition of “Qualifying Transaction” for purposes of this Promotion.
When will I begin earning the 0.70% APY Boost?
Once you have completed all qualifying activities described above, you will begin receiving the 0.70% APY Boost on your Savings account balances by the following business day after your single Qualifying Transaction posts to your account.
How long will I earn the 0.70% APY Boost?
You will continue to receive the 0.70% APY Boost for a period of up to 6 months (the “Boost Period”), provided that you maintain SoFi Plus for the full Boost Period.
As long as you receive an Eligible Direct Deposit or pay the SoFi Plus Subscription Fee every 30 calendar days, you will remain enrolled in SoFi Plus. See the SoFi Plus Terms and Conditions for additional details.
During the Boost Period, if you lose your SoFi Plus status for any period, you will not earn the 0.70% APY Boost for that period. Your rates will revert to the standard rates set forth on the SoFi Bank Rate Sheet at https://www.sofi.com/legal/banking-rate-sheet. However, you will be eligible to receive the 0.70% APY Boost again during the remainder of the Boost Period by re-enrolling in SoFi Plus.
Additional Important Terms:
• The 0.70% APY Boost may not be combined with other promotional rates.
• Promotion is non-transferable and limited to one 0.70% APY Boost per account.
• Each SoFi Joint account can only receive one boost.
• SoFi reserves the right to exclude any members from participating in this Promotion for any reason, such as suspected fraud, misuse, or suspicious activity. SoFi also reserves the right to modify, suspend, or terminate the Promotion at any time without notice.
• Standard rates are variable and subject to change at any time. There is no minimum balance requirement to earn standard rates. Fees may reduce earnings. For current rates and additional disclosures, please see: https://www.sofi.com/legal/banking-rate-sheet.
Read more3K Transfer Boost Promo
Transfer Boost Promo
Frequently Asked Questions
How do I qualify for the 6-month 4.30% APY boost?
To qualify, you’ll need to (1) enroll by clicking the special link we sent you by 10/24, and (2) make a single qualifying transaction of $3K or more into your SoFi Checking & Savings account – which SoFi must receive by 12/24. Once your qualifying transaction posts, your savings APY will automatically increase by 0.70% for 6 months, as long as you maintain SoFi Plus status during this period. Note: make sure you click on the link BEFORE you transfer funds.
Which “Qualifying Transaction” deposit types are eligible?
The following are eligible deposit types. Make sure you make a single deposit/transfer of $3K or more.
• ACH transfer (including direct deposit)
• Inbound wire transfers
• Mobile check deposit.
The following are not eligible funding sources:
• Transfers between an account holder’s SoFi Checking account, SoFi Savings account, Vaults and/or SoFi Invest accounts
• Peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder)
• Interest payments or bonuses
• Credits, reversals, and refunds from SoFi Bank or from a merchant
• Instant funding to your SoFi Bank Debit Card
• Push payments to your SoFi Bank Debit Card
• Cash deposits
How do I enroll for the campaign?
It’s simple—just click the special link we send you by 10/24. You’ll be taken to the “Transfer Money” page, and by logging in and visiting that page, you’re automatically enrolled. Note: make sure you click on the link BEFORE you transfer funds.
Who is eligible for the campaign?
This offer is available only to existing members who received a direct communication from SoFi. If you didn’t receive the offer from SoFi, you’re NOT currently eligible for this campaign.
Do I need to do anything after I make my “Qualifying Transaction”?
Nope! Once you click the link and make your qualifying transaction during the required periods, you’re automatically enrolled. Your boosted rate will be applied to your savings balance within a few days and last for 6 months, as long as you remain in SoFi Plus.
When will I see the boosted rate?
After you click the link, make your qualifying transaction (SoFi must receive it by 12/24), and your deposit posts, you’ll start earning the boosted rate on your savings balance. The boosted rate is effective for 6 months from that date, as long as you maintain SoFi Plus.
What happens after the 6-month boost ends?
After 6 months, your APY will return to SoFi’s then-current variable rate for SoFi Plus members. You’ll still continue earning a highly competitive APY—no action required on your end.
Terms and Conditions
Participating SoFi Plus Members can earn up to 4.30% Annual Percentage Yield (APY) with a limited-time 0.70% APY Boost to the current Savings APY of 3.60% (rate current as of 11/12/25). Rates are variable and subject to change.
SoFi Targeted Balances APY Boost Promotion Terms
The following terms and conditions (the “Terms”) apply to the SoFi Targeted Balances APY Boost Promotion (the “Promotion”), which allows Eligible Members (as defined below) to receive a 0.70% annual percentage yield (“APY”) boost to the APY earned on their SoFi Savings account (the “0.70% APY Boost”) for up to 6 months by completing the required actions described below.
Promotion Period:
10/10/25 at 12:00 a.m. E.T. – 12/24/25 at 11:59 p.m. E.T.
Who is eligible for the Promotion?
This Promotion is available by invitation only. It is open to existing SoFi Checking and Savings members who are enrolled in SoFi Plus as of 10/3/2025 and who have received a targeted invitation for this Promotion (“Eligible Members”) from SoFi. Members who did not receive a direct promotional communication from SoFi for this offer are not eligible.
What qualifying activities do I need to complete to earn the 0.70% APY Boost?
In order to receive the 0.70% APY Boost, you must complete all of the following qualifying activities:
1. Enroll in the Promotion between 10/10/25 and 10/24/25 by clicking the unique link in your targeted promotional communication from SoFi and logging into your SoFi account. You must click and enroll by 10/24/25 11:59 PM ET.
2. Make a single Qualifying Transaction (as defined below) of $3,000 or more into your SoFi Checking or Savings account. The Qualifying Transaction must be received by SoFi and post to your account no later than 12/24/25 11:59 PM ET.
3. After making your single Qualifying Transaction, maintain your SoFi Plus status, for the entire 6-month Boost Period (as defined below).
What is a “Qualifying Transaction”
Qualifying Transaction means a single deposit into your SoFi Checking or Savings account from an external source via one of the following eligible methods: (i) ACH transfers (ii) inbound wire transfers, and (iii) mobile check deposits (a “Qualifying Transaction”).
Qualifying Transactions DO NOT include: (i) transfers between an account holder’s SoFi Checking account, SoFi Savings account, Vaults and/or SoFi Invest accounts; (ii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder); (iii) interest payments; (iv) bonuses issued by SoFi Bank or its affiliates;(v) credits, reversals, and refunds from SoFi Bank or from a merchant; (vi) instant funding to your SoFi Bank Debit Card; (vii) push payments to your SoFi Bank Debit Card; and (viii) cash deposits. SoFi shall, in its sole discretion, determine whether a transaction meets the definition of “Qualifying Transaction” for purposes of this Promotion.
When will I begin earning the 0.70% APY Boost?
Once you have completed all qualifying activities described above, you will begin receiving the 0.70% APY Boost on your Savings account balances by the following business day after your single Qualifying Transaction posts to your account.
How long will I earn the 0.70% APY Boost?
You will continue to receive the 0.70% APY Boost for a period of up to 6 months (the “Boost Period”), provided that you maintain SoFi Plus for the full Boost Period.
As long as you receive an Eligible Direct Deposit or pay the SoFi Plus Subscription Fee every 30 calendar days, you will remain enrolled in SoFi Plus. See the SoFi Plus Terms and Conditions for additional details.
During the Boost Period, if you lose your SoFi Plus status for any period, you will not earn the 0.70% APY Boost for that period. Your rates will revert to the standard rates set forth on the SoFi Bank Rate Sheet at https://www.sofi.com/legal/banking-rate-sheet. However, you will be eligible to receive the 0.70% APY Boost again during the remainder of the Boost Period by re-enrolling in SoFi Plus.
Additional Important Terms:
• The 0.70% APY Boost may not be combined with other promotional rates.
• Promotion is non-transferable and limited to one 0.70% APY Boost per account.
• Each SoFi Joint account can only receive one boost.
• SoFi reserves the right to exclude any members from participating in this Promotion for any reason, such as suspected fraud, misuse, or suspicious activity. SoFi also reserves the right to modify, suspend, or terminate the Promotion at any time without notice.
• Standard rates are variable and subject to change at any time. There is no minimum balance requirement to earn standard rates. Fees may reduce earnings. For current rates and additional disclosures, please see: https://www.sofi.com/legal/banking-rate-sheet.
Read more
Is $5,000 Enough for an Emergency Fund?
When the economy feels this unpredictable, you want to hope for the best but brace for the worst. And that means being financially prepared for whatever happens.
One of the best ways to prepare is to have an emergency savings — a buffer that can tide you over in case you lose your job or something else goes awry. The general rule of thumb is to have enough set aside to cover at least three to six months’ worth of living expenses.
But how many Americans actually have that much? Fewer than half, according to a Bankrate survey taken in May. In fact, 24% have no emergency savings at all, and another 30% have less than three months’ worth, the survey showed.
An earlier survey from the Transamerica Center for Retirement Studies suggests a similar level of vulnerability. The median (aka typical) emergency savings among U.S. workers is just $5,000, the survey showed — an “alarmingly low” amount in the view of the Transamerica researchers.
Of course, $5,000 may be enough for folks with a relatively low cost of living. But the average American spends more than that in just one month ($5,030 as of the second quarter of 2025 , according to the Bureau of Economic Analysis,) suggesting many people are falling well short of the recommended amount of emergency savings. Just 26% of the surveyed workers have $15,000 or more stashed away, while 17% have nothing at all saved.
Although your capacity to weather a financial setback is a higher priority when fears of an economic downturn are rising, having a cash reserve can protect you from the financial strain of any unexpected event — an emergency room visit, surprise car repairs, or a broken furnace. Without it, you might have to rely on less desirable alternatives such as a high-interest loan or drawing on your retirement funds.
Emergency savings are also critical for peace of mind.
“Research shows that having cash to cover the unexpected has the biggest impact on financial stress, anxiety, and satisfaction,” said Brian Walsh, a Certified Financial Planner® and SoFi’s Head of Advice & Planning.
So what? Building a healthy and readily-accessible emergency fund is one of the most effective steps you can take toward financial security. Beyond being good practice, it can become a lifeline. To guide you on the ideal amount, use a calculator like SoFi’s. And don’t worry if you haven’t started yet – it’s never too late.
Related Reading
Experts Now Recommend a 12-Month Emergency Fund (MarketWatch via MSN)
An Essential Guide to Building an Emergency Fund (Consumer Financial Protection Bureau)
Should You Ever Invest Your Emergency Fund? (SoFi)
Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
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Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
SoFi isn't recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.
OTM20250924EC
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