LoanMath

Extra payments on a $150,000 mortgage at 7%

Amortization computed month by month.

$58,320

saved by paying $100 extra a month on a $150,000 30-year mortgage at 7% (base payment $998)

Savings by extra payment

ExtraPaid off inInterest savedTime saved
+$50/mo25 yr 10 mo$34,6694 yr 2 mo
+$100/mo22 yr 11 mo$58,3207 yr 1 mo
+$200/mo18 yr 10 mo$89,27511 yr 2 mo
+$300/mo16 yr 1 mo$109,04313 yr 11 mo
+$500/mo12 yr 7 mo$133,30117 yr 5 mo
+$1,000/mo8 yr 4 mo$161,34921 yr 8 mo

Principal and interest only; baseline interest $209,263. Confirm your lender applies extra payments to principal.

FAQ

How much does $100 extra a month save on a $150,000 mortgage at 7%?

About $58,320 in interest, and the loan is paid off in 22 yr 11 mo instead of 30 years.

Is it better to invest instead?

Prepaying earns a guaranteed 7% return. Investing may earn more over long periods but with risk; many people first capture any 401(k) match and build an emergency fund.