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Calculate Payment on 15 Year Mortgage

Reviewed by Calculator Editorial Team

Calculating your 15-year mortgage payment helps you understand your monthly financial commitment when taking out a fixed-rate loan for 15 years. This calculator provides an exact monthly payment based on your loan amount, interest rate, and down payment.

How to Use This Calculator

To calculate your 15-year mortgage payment:

  1. Enter the total loan amount you're requesting
  2. Input your down payment amount (if any)
  3. Provide the annual interest rate (APR)
  4. Click "Calculate Payment" to see your monthly payment

The calculator will display your exact monthly payment, total interest paid over the loan term, and a breakdown of how much goes toward principal vs interest each month.

Mortgage Payment Formula

The monthly mortgage payment is calculated using the standard amortization formula:

Formula

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

Where:

  • M = Monthly payment
  • P = Principal loan amount (loan amount - down payment)
  • i = Monthly interest rate (annual rate / 12)
  • n = Number of payments (loan term in years × 12)

For a 15-year mortgage, n = 15 × 12 = 180 payments.

This formula accounts for the fact that each payment includes both principal and interest, with the interest portion decreasing as the loan balance is paid down.

Worked Example

Let's calculate a monthly payment for a $200,000 loan with a 3% annual interest rate and $40,000 down payment:

  1. Principal (P) = $200,000 - $40,000 = $160,000
  2. Monthly interest rate (i) = 3% / 12 = 0.0025 (0.25%)
  3. Number of payments (n) = 15 × 12 = 180
  4. Plug into formula: M = $160,000 [ 0.0025(1 + 0.0025)^180 ] / [ (1 + 0.0025)^180 - 1 ]
  5. Calculate: M ≈ $1,124.42 per month

Over 15 years, you would pay approximately $198,591 in total payments, with $38,591 going toward interest.

15-Year vs 30-Year Mortgages

Comparing a 15-year mortgage with a 30-year mortgage for the same loan amount and interest rate shows significant differences:

Term Monthly Payment Total Interest Paid Total Payments
15 years $1,124.42 $38,591 $198,591
30 years $777.18 $113,591 $253,591

As shown in this example, a 15-year mortgage has higher monthly payments but pays off the loan faster and costs less in total interest. The choice between terms depends on your financial situation and goals.

Frequently Asked Questions

What is the difference between APR and interest rate?
APR (Annual Percentage Rate) is the total cost of credit including fees and interest, while the interest rate is just the interest portion. For mortgages, these are often the same unless there are additional fees.
Can I pay extra toward my mortgage?
Yes, paying extra principal can reduce your loan term and total interest paid. Our calculator shows the impact of additional payments on your amortization schedule.
What happens if interest rates rise after I get my mortgage?
With a fixed-rate mortgage, your interest rate stays the same regardless of market changes. This provides stability in your monthly payments.
Are there any closing costs I should consider?
Yes, closing costs typically range from 2% to 5% of the loan amount and include fees for appraisal, title insurance, and other services.