Apologies if this is out there... if not, bear with me here.
I'm not going to argue the math/psychology of paying off a mortgage early (extra payments/principal) vs. investing/keeping mortgage "forever"
What I'm looking for is a calculator (or equation) that can help me figure out how I can use the power of compounding to actually pay off my house faster.
$200K 30 Year Mortgage at 4% = Minimum Monthly PI Payment of $955
Willing to spend a total of $1500 towards PI payments each month ($545 additional).
Given this scenario, some might say, just throw the $1500 at the mortgage and you'll be done in about 177 Months guaranteed.
But what if I took that extra $545 and invested in at whatever rate (call it 7-10%)? How soon would I be able to payoff the mortgage that way?
In other words, at what point does my $545 extra payment investment equal my minimum monthly payment balance.
In the scenario above, I've eyeballed that if I am able to get 10% on $545 monthly, I would hit "equilibrium" at about 142 months.
That is almost 3 years sooner than just going the traditional method of making extra payments.
Obviously, I can figure this out, by using multiple calculators and estimating a couple of things.. but if I change any variables like "gain percentage" or the amount of the "extra payment" I have to redo everything.
Again, understand the nuances here (ie. bear market/negative returns/you're losing money by paying off your mortgage/etc.)
Just hoping someone already has this because I'm pretty clueless at making excel work