Bankrate 15 Year Mortgage Calculator

Use our Bankrate 15-year mortgage calculator to estimate your monthly payments, total interest, and loan costs for a 15-year fixed-rate mortgage. This tool helps you compare different loan scenarios and understand the financial implications of choosing a shorter-term mortgage.

How the 15-Year Mortgage Calculator Works

A 15-year mortgage is a home loan that's repaid over 15 years instead of the more common 30-year term. The shorter repayment period means you'll pay less in total interest over the life of the loan, but your monthly payments will be higher than with a 30-year mortgage.

Key Features of a 15-Year Mortgage

Shorter repayment term (15 years instead of 30)
Higher monthly payments than a 30-year mortgage
Lower total interest payments over the loan term
Potential for lower monthly payments if interest rates are low
Opportunity to pay off the mortgage early without penalty

When to Consider a 15-Year Mortgage

15-year mortgages may be suitable for borrowers who:

Have strong credit scores and stable income
Can afford higher monthly payments
Plan to stay in the home for at least 15 years
Want to minimize total interest payments
Have access to a down payment of at least 20%

Note: Many lenders require a minimum down payment of 20% for 15-year mortgages. You may need to put down more money upfront to qualify.

Mortgage Calculation Formula

The monthly mortgage payment is calculated using the following formula:

M = P [ i(1 + i)^n ] / [ (1 + i)^n - 1 ]

Where:

M = Monthly payment
P = Principal loan amount
i = Monthly interest rate (annual rate divided by 12)
n = Number of payments (loan term in years × 12)

This formula calculates the fixed monthly payment required to fully amortize the loan over the term. The payment includes both principal and interest components.

Additional Calculations

Our calculator also computes:

Total interest paid over the life of the loan
Total amount paid (principal + interest)
Amortization schedule breakdown

Worked Example

Let's calculate a 15-year mortgage with these assumptions:

Loan amount: $200,000
Interest rate: 4.5% (0.375% monthly)
Loan term: 15 years (180 months)

Using the formula:

M = $200,000 [ 0.00375(1 + 0.00375)^180 ] / [ (1 + 0.00375)^180 - 1 ]

Calculating this gives a monthly payment of approximately $1,534.36

Over the 15-year term, you would pay:

Total principal: $200,000
Total interest: $124,308
Total amount paid: $324,308

This example shows that while your monthly payment is higher than a 30-year mortgage, you'll pay significantly less in total interest over the life of the loan.

15-Year vs 30-Year Mortgages

Here's a comparison of a $200,000 mortgage at 4.5% interest rate:

Term	Monthly Payment	Total Interest	Total Amount Paid
15 years	$1,534.36	$124,308	$324,308
30 years	$995.64	$223,920	$423,920

As this comparison shows, while the 15-year mortgage has higher monthly payments, it results in lower total interest payments and a smaller total amount paid over the life of the loan.

Frequently Asked Questions

What is a 15-year mortgage?

How do 15-year mortgages compare to 30-year mortgages?

15-year mortgages typically have higher monthly payments but lower total interest payments over the life of the loan. They're suitable for borrowers who can afford higher payments and want to minimize total interest costs. 30-year mortgages have lower monthly payments but higher total interest costs over the loan term.

What are the advantages of a 15-year mortgage?

Advantages include lower total interest payments, potential for lower monthly payments if interest rates are low, and the opportunity to pay off the mortgage early without penalty. They're suitable for borrowers who plan to stay in the home for at least 15 years.

What are the disadvantages of a 15-year mortgage?

Disadvantages include higher monthly payments compared to 30-year mortgages, potential for higher payments if interest rates rise, and the need to stay in the home for the full term to avoid negative equity.

Can I get a 15-year mortgage with a low down payment?

Many lenders require a minimum down payment of 20% for 15-year mortgages. You may need to put down more money upfront to qualify. Some lenders offer 15-year mortgages with as little as 5% down, but these are less common and may have higher interest rates.