Every extra dollar you pay goes directly to your principal — reducing the balance that interest is calculated on. Even small consistent extra payments can save tens of thousands of dollars over the life of your loan.
Year 1 = start from month 1. Year 5 = start at the beginning of year 5.
Extra Payment Strategy
Total Interest (Standard)
$404,079
Total Interest (With Extra)
$259,240
Standard Payoff Time
30 yr 1 mo
New Payoff Time
20 yr 8 mo
Estimates based on your inputs. Actual results may vary. Terms →
Here’s how your payoff timeline changes as you increase your monthly extra payment.
| Extra/mo | Time saved | Interest saved |
|---|---|---|
| $100 | 4 yr 2 mo | $65,914 |
| $200 | 7 yr 2 mo | $111,252 |
| $300 (Your scenario) | 9 yr 5 mo | $144,839 |
| $500 | 12 yr 8 mo | $191,923 |
*Based on your inputs: $300,000 at 6.8%
When you make your regular mortgage payment, most of it goes to interest — especially early on.
Any EXTRA amount above your required payment goes 100% to principal.
This reduces your balance, which reduces next month's interest charge, which means more of your regular payment goes to principal too.
This compounding effect accelerates over time.
Add a fixed amount every month.
Even $100/mo on a $300k loan saves ~$40k and cuts ~3.5 years off your term.
Set it and forget it.
Tax refund, bonus, or windfall.
A $10,000 lump sum early in your loan can save 2-3x that amount in interest.
Timing matters — earlier = more savings.
Pay half your monthly payment every 2 weeks.
This creates 13 full payments per year instead of 12.
No budget change required — just a timing shift.
Saves ~4 years on a typical 30-year mortgage.
Estimates based on your inputs. Actual results may vary. Terms →