Here is an estimation:
Pre tax income: $200,000
Fed taxes (rough estimate): $45,000
Insurance (depends on where you live): $15,000
This gives you about a take home net of roughly $140,000 dollars. You then need to calculate your yearly cost of living. For me personally, I spend roughly $30,000 including housing, food, car, gas, etc. When I go back to school in August I am cutting that down to $20,000. This number really depends on your lifestyle. For argument sake, lets say your cost of living will be $45,000 (You can live VERY comfortably on this, i.e, going out to eat a few times a month at nice restaurants, buying healthy groceries, a modest car payment).
Now you have $100,000 left over. Here is a chart that will tell you how long it will take you to pay off $230,000 at 6% and what that will cost.
Principle $230,000
Interest 0.06
Years to play off 2 3 4 5 6 7 8
Yearly Payment ($125,450) ($86,045) ($66,376) ($54,601) ($46,773) ($41,201) ($37,038)
Monthly Payment ($10,454) ($7,170) ($5,531) ($4,550) ($3,898) ($3,433) ($3,087)
Total Cost ($250,901) ($258,136) ($265,504) ($273,006) ($280,640) ($288,407) ($296,306)
Total Interest Paid $20,901 $28,136 $35,504 $43,006 $50,640 $58,407 $66,306
As you see, you could easily pay it off in 3 years ($86,045 per year for 3 years) and have almost $14,000 dollars to add to your cost of living or save for retirement. Very doable.
