$
%
$
Added to principal each month
$
One-time extra payment each year
$
%
If you invested extra payments instead
Pay off 6.2 years early
Regular payments vs accelerated payoff
Total interest over 30 years
Total interest over 23.8 years
Visual comparison of interest costs
Regular Payments
$480,583
With Extra Payments
$364,997
Should you pay down the mortgage or invest?
Guaranteed 6.75% return (interest saved)
✓ Risk-free, guaranteed return
✓ Peace of mind, debt freedom
✓ Builds home equity faster
Potential portfolio at 7% return
✓ Potentially higher returns
✓ Maintains liquidity
✓ Tax advantages (401k, IRA)
What these numbers mean for you
Regular payments: $2,335/month, $480,583 interest over 30 years
Prepay strategy: Pay off in 23.8 years, save $115,587 in interest
Investing instead: End with $243,994 portfolio vs $115,587 interest saved
The "right" choice depends on: interest rate vs investment returns, risk tolerance, and peace of mind value
Adding $200/month to your mortgage payment saves $115,587 in interest and pays off your loan 6.2 years early. That's a guaranteed 6.75% return on every extra dollar you pay.
Here are the exact formulas behind your numbers. No black boxes — just math.
Extra Monthly Payment
New Payoff Date
Interest Saved
Prepay vs Invest
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