15 vs 30 year mortgage calculator
This 15 vs 30 year mortgage calculator compares the two most common terms, showing the higher payment of the 15-year loan against the interest it saves.
The trade-off
A 15-year loan usually has a lower rate and builds equity far faster, but the payment is roughly 30% to 40% higher. A 30-year loan keeps the payment low and flexible. A common middle path is to take the 30-year loan and make extra principal payments when you can, keeping the option to pay less in a tight month.
How to decide
Compare the payment with your budget after other goals: retirement savings, emergency fund and other debt. If the 15-year payment would crowd these out, a 30-year loan with voluntary extra payments is safer. If you can afford it comfortably and want to be debt-free sooner, the 15-year saves substantial interest.
The two loans compared
Loan A ($320,000 at 6.75% for 30 years) costs $2,075.51 a month and $427,188 in interest. Loan B ($320,000 at 6.1% for 15 years) costs $2,717.66 a month and $169,179 in interest. Loan B costs less in total, by $258,009, while its monthly payment is lower by $642.15.
| Loan A | Loan B | |
|---|---|---|
| Amount | $320,000 | $320,000 |
| Rate | 6.75% | 6.1% |
| Term | 30 years | 15 years |
| Monthly payment | $2,075.51 | $2,717.66 |
| Total interest | $427,188 | $169,179 |
| Total paid | $747,188 | $489,179 |
Frequently asked questions
Is a 15-year mortgage better than a 30-year?
It costs much less in interest but has a higher payment. It is better if you can afford the payment comfortably.
Can I get the best of both?
Take the 30-year loan and pay extra when you can. You get a lower required payment and can still pay it off early.
Related calculators
Estimates from standard loan formulas, not a loan offer or financial advice. Example rates are assumptions: use your own quote.