Mortgage Example
Mortgage Extra Payment — How Much Interest You Save
See how making extra monthly payments on a $300k mortgage reduces total interest and loan term.
Scenario
$300,000 mortgage at 7%, 30 years. Compare $0, $100, $300 extra/month.
Inputs
Loan$300,000
Rate7%
Base Payment$1,996/month
Results
No extra — term30 years
+$100/month — term26.5 years
+$300/month — term22 years
+$300/month — interest saved~$104,000
Explanation
An extra $100/month saves $44k and cuts 3.5 years. An extra $300/month saves $104k and cuts 8 full years. The earlier extra payments are made, the more interest is avoided because it's all compound math.
Key Takeaways
- Even $50/month extra makes a meaningful difference over 30 years.
- Apply any tax refund or bonus directly to mortgage principal.