$
%
$
Added to principal each month
$
One-time extra payment each year
%
If you invested extra payments instead
Pay off 8.3 years early
Total interest paid with and without extra payments
Regular Payments
$480,583.13
With Extra Payments
$327,360.63
Plus pay off your mortgage 8.3 years early
How quickly you build equity with extra payments
Should you pay down the mortgage or invest?
Guaranteed 6.75% return
Potential at 7% return
What these numbers mean for you
Making extra payments saves you $153223 in interest and pays off your loan 8.3 years earlier.
Your effective return on extra payments is 195.7% (the interest rate you're avoiding).
If you invested the extra payment at 7% instead, you'd have $368126 - that's $214904 more than the interest you'd save.
Your mortgage rate (6.75%) is lower than typical investment returns (7%). Consider investing extra cash instead.
Adding $300/month to your mortgage saves $153,223 in interest and pays off your loan 8.3 years early. That's a guaranteed 6.75% return on every extra dollar.
Here are the exact formulas behind your numbers. No black boxes — just math.
Standard Payoff
With Extra Payments
Interest Saved
Time Saved
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