Calculate Mortgage Payment 15 Year Fixed
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Reviewed by Calculator Editorial Team
A 15-year fixed mortgage offers lower interest rates and predictable payments compared to shorter-term loans. This calculator helps you estimate your monthly payment based on loan amount, interest rate, and term.
How to Use This Calculator
Enter your loan details in the calculator panel on the right. The calculator will show your estimated monthly payment, total interest paid, and a breakdown of your payments over time.
Key inputs include:
- Loan amount - The total amount you're borrowing
- Interest rate - The annual percentage rate (APR)
- Loan term - Fixed at 15 years for this calculator
The calculator uses the standard mortgage payment formula to provide accurate estimates. Results are based on the assumptions shown in the calculator panel.
The Formula Explained
The monthly mortgage payment is calculated using this 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)
For a 15-year fixed mortgage, n equals 180 (15 × 12). The formula accounts for the interest on the remaining balance each month, creating a level payment over the loan term.
Worked Example
Let's calculate a monthly payment for a $200,000 loan at 4% annual interest over 15 years.
- Convert annual rate to monthly: 4% ÷ 12 = 0.333% or 0.00333 in decimal
- Number of payments: 15 years × 12 = 180 months
- Plug values into formula:
M = $200,000 [ 0.00333(1 + 0.00333)180 ] / [ (1 + 0.00333)180 - 1 ]
- Calculate the monthly payment: $200,000 × 0.00333 × (1.00333)180 / [(1.00333)180 - 1] ≈ $1,245.60
This example shows that with a $200,000 loan at 4% interest, your monthly payment would be approximately $1,245.60 over 15 years.
Frequently Asked Questions
What is a 15-year fixed mortgage?
A 15-year fixed mortgage is a home loan with a fixed interest rate for 15 years. This typically offers lower interest rates than shorter-term loans and provides predictable monthly payments.
How does the interest rate affect my payment?
A higher interest rate means more of your monthly payment goes toward interest, increasing your total cost of borrowing. The calculator shows how changes in interest rate affect your monthly payment.
Can I pay off my mortgage early?
Yes, you can pay off a 15-year fixed mortgage early without penalty. Paying extra principal reduces your total interest paid and shortens the loan term.
What are the pros and cons of a 15-year mortgage?
Pros: Lower interest rates, predictable payments, lower total interest paid. Cons: Higher monthly payments, shorter repayment period, potential for higher payments if rates rise.