15 Versus 30 Year Mortgage Calculator
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Reviewed by Calculator Editorial Team
Deciding between a 15-year and 30-year mortgage is a major financial decision that affects your monthly payments, total interest paid, and overall affordability. Our calculator helps you compare these two options by showing you the monthly payments, total interest, and break-even points for each term.
How to use this calculator
Using our 15 versus 30 year mortgage calculator is simple:
- Enter the home price you're considering
- Input your down payment amount
- Select your current interest rate
- Choose between 15-year and 30-year terms
- Click "Calculate" to see the comparison
The calculator will show you:
- Monthly payments for each term
- Total interest paid over the loan term
- Total amount paid (principal + interest)
- Break-even point if you consider refinancing
Important Note
This calculator provides estimates based on the information you provide. Actual mortgage terms may vary depending on your lender and specific circumstances. Always consult with a financial advisor before making major financial decisions.
Key differences between 15 and 30 year mortgages
There are several important differences between 15-year and 30-year mortgages that you should consider:
Interest Rates
15-year mortgages typically have higher interest rates than 30-year mortgages because they're considered riskier by lenders. This means you'll pay more in interest over the life of the loan.
Monthly Payments
15-year mortgages have higher monthly payments because the loan amount is repaid more quickly. This can be a significant financial burden if you have other expenses.
Total Interest Paid
While 15-year mortgages have higher monthly payments, they typically result in paying less total interest over the life of the loan compared to 30-year mortgages.
Refinancing Options
With a 15-year mortgage, you have fewer opportunities to refinance. This can be beneficial if you expect interest rates to rise, but it also means you're locked into higher payments for a shorter period.
Formula Used
Monthly Payment = P * (r(1+r)^n) / ((1+r)^n - 1)
Where:
- P = Principal loan amount
- r = Monthly interest rate (annual rate / 12)
- n = Number of payments (term in years * 12)
| Term | Monthly Payment | Total Interest | Total Amount Paid |
|---|---|---|---|
| 15 years | $2,634.86 | $129,226.38 | $429,226.38 |
| 30 years | $1,643.98 | $226,074.40 | $526,074.40 |
Understanding the calculator results
When you use our calculator, you'll see several key pieces of information that help you understand the implications of choosing a 15-year versus 30-year mortgage:
Monthly Payment Comparison
The calculator shows you the monthly payment for both terms. Remember that the 15-year mortgage will have a significantly higher payment, which might be difficult to manage if you have other financial obligations.
Total Interest Paid
While the 15-year mortgage has higher monthly payments, it typically results in paying less total interest over the life of the loan. This is because you're repaying the loan more quickly, reducing the amount of interest that accumulates.
Total Amount Paid
The calculator shows the total amount you'll pay for the loan, including principal and interest. For the 15-year mortgage, this amount will be less than the 30-year mortgage, even though the monthly payments are higher.
Break-Even Point
The calculator also shows the break-even point, which is the point at which the total amount paid for both loans becomes equal. This can help you understand how long you'd need to stay in the home to make the 15-year mortgage more financially beneficial.
Consider Your Financial Situation
When deciding between a 15-year and 30-year mortgage, consider your financial situation and goals. If you expect to sell or refinance the home within a few years, a 30-year mortgage might be more appropriate. If you plan to stay in the home long-term and can handle higher monthly payments, a 15-year mortgage could save you money on interest.
Frequently Asked Questions
- Which mortgage term saves more money?
- A 15-year mortgage typically saves more money on total interest paid compared to a 30-year mortgage, even though the monthly payments are higher.
- Can I refinance a 15-year mortgage?
- Yes, you can refinance a 15-year mortgage, but it's more difficult than refinancing a 30-year mortgage. Lenders typically require a higher credit score and may charge higher fees.
- What happens if I can't make the higher payments on a 15-year mortgage?
- If you can't make the higher payments on a 15-year mortgage, you risk foreclosure. It's important to carefully consider your financial situation before choosing this option.
- Are there any tax benefits to a 15-year mortgage?
- There are no specific tax benefits to a 15-year mortgage, but you may be able to deduct mortgage interest and property taxes on your federal income tax return.
- Can I get a 15-year mortgage with bad credit?
- It's more difficult to get a 15-year mortgage with bad credit, as lenders consider these loans riskier. You may need to put down a larger down payment or find a co-signer to qualify.