Extra payments on a $500,000 mortgage at 6%
Amortization computed month by month.
$57,325
saved by paying $100 extra a month on a $500,000 30-year mortgage at 6% (base payment $2,998)
Savings by extra payment
| Extra | Paid off in | Interest saved | Time saved |
|---|---|---|---|
| +$50/mo | 28 yr 9 mo | $30,383 | 1 yr 3 mo |
| +$100/mo | 27 yr 6 mo | $57,325 | 2 yr 6 mo |
| +$200/mo | 25 yr 6 mo | $103,145 | 4 yr 6 mo |
| +$300/mo | 23 yr 9 mo | $140,818 | 6 yr 3 mo |
| +$500/mo | 21 yr 0 mo | $199,501 | 9 yr 0 mo |
| +$1,000/mo | 16 yr 5 mo | $292,257 | 13 yr 7 mo |
Principal and interest only; baseline interest $579,191. Confirm your lender applies extra payments to principal.
FAQ
How much does $100 extra a month save on a $500,000 mortgage at 6%?
About $57,325 in interest, and the loan is paid off in 27 yr 6 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.