Torn between a shorter term and lower payments? Use this 15 versus 30 year mortgage calculator to compare monthly costs and total interest savings side-by-side to find the best fit for your financial goals.
15 vs 30 Year Comparison
Total Interest Saved: $0.00
15 versus 30 Year Mortgage Calculator Formula
This calculator runs two parallel amortization calculations to compare the outcomes. The core formula for monthly payments (M) is:
We calculate this twice: once where n = 360 (30 years) and once where n = 180 (15 years), typically with different interest rates.
Variables
- P: Loan Amount (Principal).
- i: Monthly Interest Rate (Annual Rate / 12).
- n: Number of Payments (360 for 30-yr, 180 for 15-yr).
- Total Cost: Monthly Payment × n.
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What is 15 Versus 30 Year Mortgage Calculator?
A 15 versus 30 year mortgage calculator is a comparative tool that highlights the “cost vs. cash flow” dilemma of home financing. A 30-year loan offers lower monthly payments, freeing up cash for other investments or expenses. A 15-year loan requires a higher monthly payment but builds equity faster and saves a massive amount in total interest.
This tool helps you decide if your budget can handle the higher 15-year payment in exchange for the long-term wealth building of being debt-free sooner.
How to Calculate 15 vs 30 Year Mortgage (Example)
Example: $300,000 loan. 30-year rate at 6.5% vs 15-year rate at 5.75%.
- 30-Year Payment: ~$1,896/mo. Total Interest: ~$382,000.
- 15-Year Payment: ~$2,491/mo. Total Interest: ~$148,000.
- Comparison: The 15-year loan costs $595 more per month, but saves you $234,000 in total interest over the life of the loan.
Frequently Asked Questions (FAQ)
Typically, yes. Lenders offer lower interest rates on 15-year loans because the money is lent out for a shorter period, reducing the lender’s risk of inflation and default over time.
Yes. You can take a 30-year loan for the flexibility of lower payments, but voluntarily pay the higher 15-year amount. This pays off the loan early without locking you into a mandatory higher payment.
The 15-year mortgage builds equity much faster. Because the term is half as long, a significantly larger portion of every monthly payment goes toward principal right from the start.
Sometimes. Because the monthly payment is higher, your Debt-to-Income (DTI) ratio will be higher. You need sufficient income to prove you can afford the larger monthly obligation.