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Mortgage With $200 Extra a Month
Adding $200 to every mortgage payment sounds small. The page shows how much time and interest it saves on a $250,000 loan at 6 percent.
The regular payment is $1,498.88. Adding $200 cuts 7 years 9 months from the loan.
How the extra payment works
The regular payment on $250,000 at 6 percent is $1,498.88. Adding $200 gives $1,698.88 each month. Run the loan month by month with that bigger payment and it ends when the balance reaches zero.
Worked example
Over the full 30-year term the regular payments cost $289,595 in interest. Adding $200 a month reduces that by $86,233.
You pay $53,400 extra to cut 7 years 9 months from the loan. The interest you avoid is $86,233.
Questions about this calculator
Is $200 extra a month worth it on a $250,000 mortgage at 6 percent?
That depends on your other goals. The extra money cuts 7 years 9 months from the loan. The calculator cannot weigh what else you could do with $200 a month.
Would paying the same total as one lump sum at the start beat $200 a month?
The extra payments total about $53,400. Paid at the start as one lump sum, that money would save $165,655 of interest instead of $86,233. Money paid earlier cuts the balance sooner. Few people have that cash on day one so the monthly habit is the practical route.
How much do the extra payments total on a $250,000 loan with $200 a month?
About $53,400 over 22 years 3 months.
Can I stop paying the extra $200 later?
Usually yes. The extra $200 is optional, so the required payment stays at $1,498.88. Check your loan terms for any rules on prepayment.
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This page is for education only and is not financial or tax advice.