Calculator for 15 Year Mortgage

This calculator helps you determine your monthly mortgage payments for a 15-year loan term. Whether you're comparing mortgage options or planning your budget, understanding your monthly payments is key to making informed financial decisions.

How to Use This Calculator

To calculate your 15-year mortgage payments:

Enter the loan amount you're seeking (e.g., $200,000)
Input your annual interest rate (e.g., 4.5%)
Select the loan term (15 years)
Click "Calculate" to see your monthly payment

The calculator will display your monthly payment, total interest paid over the loan term, and a breakdown of your payments over time.

Formula Used

The monthly mortgage payment is calculated using the standard mortgage 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 accounts for the interest you'll pay over the life of the loan, providing an accurate estimate of your monthly obligations.

Worked Example

Let's calculate a $200,000 mortgage at 4.5% annual interest for 15 years:

Convert annual rate to monthly: 4.5% ÷ 12 = 0.375% or 0.00375
Calculate number of payments: 15 × 12 = 180
Plug values into formula:
M = $200,000 [ 0.00375(1 + 0.00375)¹⁸⁰ ] / [ (1 + 0.00375)¹⁸⁰ - 1 ]
Result: $1,320.46 per month

Over 15 years, you'll pay $237,686.80 in total, with $37,686.80 going to interest.

FAQ

What is a 15-year mortgage?: A 15-year mortgage is a home loan that's repaid over 15 years (180 months) with lower monthly payments than a 30-year mortgage. This can save you money on interest but requires larger down payments.
How does a 15-year mortgage compare to a 30-year mortgage?: 15-year mortgages typically have lower monthly payments but higher interest costs over the life of the loan. They're better suited for borrowers who can afford larger down payments and plan to stay in the home for the full term.
What factors affect my mortgage payment?: Your monthly payment depends on the loan amount, interest rate, loan term, and any additional fees or points you pay. The calculator shows the base payment without fees.
Can I pay extra toward my mortgage?: Yes, paying extra principal can reduce your loan balance faster and save on interest. The calculator shows the standard payment without extra payments.
What if my interest rate changes?: If your interest rate changes after you take out the loan, your monthly payment will adjust accordingly. Adjustable-rate mortgages (ARMs) have variable rates, while fixed-rate mortgages maintain the same rate.