Extra payments on a $300,000 mortgage at 7%
Amortization computed month by month.
$69,338
saved by paying $100 extra a month on a $300,000 30-year mortgage at 7% (base payment $1,996)
Savings by extra payment
| Extra | Paid off in | Interest saved | Time saved |
|---|---|---|---|
| +$50/mo | 27 yr 9 mo | $38,401 | 2 yr 3 mo |
| +$100/mo | 25 yr 10 mo | $69,338 | 4 yr 2 mo |
| +$200/mo | 22 yr 11 mo | $116,640 | 7 yr 1 mo |
| +$300/mo | 20 yr 7 mo | $151,521 | 9 yr 5 mo |
| +$500/mo | 17 yr 4 mo | $200,235 | 12 yr 8 mo |
| +$1,000/mo | 12 yr 7 mo | $266,603 | 17 yr 5 mo |
Principal and interest only; baseline interest $418,527. Confirm your lender applies extra payments to principal.
FAQ
How much does $100 extra a month save on a $300,000 mortgage at 7%?
About $69,338 in interest, and the loan is paid off in 25 yr 10 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.