How much does $100/month extra save on a mortgage?

On a $300,000/7%/30-yr mortgage: $100 extra/month saves approximately $46,000 in interest and pays off 5 years early. The impact is dramatic because it directly reduces the compounding principal.

When is the best time to make extra principal payments?

Early in the loan when the outstanding balance is largest. An extra $200/month in year 1 saves significantly more than the same $200/month in year 20 due to the compounding effect on reduced principal.

Should I pay down mortgage or invest the extra money?

Compare the mortgage rate (guaranteed return) vs expected investment return (variable). At 7% mortgage rate vs 7-10% stock returns, the decision is close. Consider tax deductibility and your risk tolerance.

Extra Principal Payment Calculator

Calculate how additional monthly principal payments reduce loan term and total interest. Shows the exact savings from $100, $200, or $500 extra per month.

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Frequently Asked Questions

How much does $100/month extra save on a mortgage?

When is the best time to make extra principal payments?

Should I pay down mortgage or invest the extra money?