Extra payments on a $400,000 mortgage at 6%
Amortization computed month by month.
$55,759
saved by paying $100 extra a month on a $400,000 30-year mortgage at 6% (base payment $2,398)
Savings by extra payment
| Extra | Paid off in | Interest saved | Time saved |
|---|---|---|---|
| +$50/mo | 28 yr 5 mo | $29,931 | 1 yr 7 mo |
| +$100/mo | 27 yr 0 mo | $55,759 | 3 yr 0 mo |
| +$200/mo | 24 yr 7 mo | $98,277 | 5 yr 5 mo |
| +$300/mo | 22 yr 8 mo | $132,027 | 7 yr 4 mo |
| +$500/mo | 19 yr 7 mo | $182,636 | 10 yr 5 mo |
| +$1,000/mo | 14 yr 11 mo | $258,284 | 15 yr 1 mo |
Principal and interest only; baseline interest $463,353. Confirm your lender applies extra payments to principal.
FAQ
How much does $100 extra a month save on a $400,000 mortgage at 6%?
About $55,759 in interest, and the loan is paid off in 27 yr 0 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.