Extra payments on a $300,000 mortgage at 6%
Amortization computed month by month.
$53,346
saved by paying $100 extra a month on a $300,000 30-year mortgage at 6% (base payment $1,799)
Savings by extra payment
| Extra | Paid off in | Interest saved | Time saved |
|---|---|---|---|
| +$50/mo | 27 yr 11 mo | $29,211 | 2 yr 1 mo |
| +$100/mo | 26 yr 1 mo | $53,346 | 3 yr 11 mo |
| +$200/mo | 23 yr 3 mo | $91,173 | 6 yr 9 mo |
| +$300/mo | 21 yr 0 mo | $119,701 | 9 yr 0 mo |
| +$500/mo | 17 yr 8 mo | $160,295 | 12 yr 4 mo |
| +$1,000/mo | 12 yr 10 mo | $216,673 | 17 yr 2 mo |
Principal and interest only; baseline interest $347,515. Confirm your lender applies extra payments to principal.
FAQ
How much does $100 extra a month save on a $300,000 mortgage at 6%?
About $53,346 in interest, and the loan is paid off in 26 yr 1 mo instead of 30 years.
Is it better to invest instead?
Prepaying earns a guaranteed 6% return. Investing may earn more over long periods but with risk; many people first capture any 401(k) match and build an emergency fund.