Mortgage 15 Year Fixed Calculator
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Reviewed by Calculator Editorial Team
Use this mortgage calculator to estimate your monthly payments for a 15-year fixed-rate mortgage. A 15-year fixed mortgage offers lower monthly payments compared to a 30-year mortgage, but you'll pay more in total interest over the life of the loan.
How the 15-Year Fixed Mortgage Calculator Works
A 15-year fixed mortgage is a home loan with a fixed interest rate for 15 years. The calculator uses the standard mortgage formula to determine your monthly payment based on the loan amount, interest rate, and loan term.
Mortgage Formula
The monthly payment (M) is calculated using the formula:
M = P [ i(1 + i)n ] / [ (1 + i)n - 1 ]
Where:
- P = Principal loan amount
- i = Monthly interest rate (annual rate divided by 12)
- n = Number of payments (loan term in years × 12)
The calculator also provides the total interest paid over the life of the loan and the total amount paid (principal + interest).
Note: This calculator provides estimates only. Your actual mortgage terms may vary based on your lender's specific requirements and additional fees.
How to Use the Mortgage Calculator
- Enter the loan amount you're seeking (e.g., $200,000).
- Input the current interest rate (e.g., 4.5%).
- Select the loan term (15 years for this calculator).
- Click "Calculate" to see your estimated monthly payment.
- Review the results, including total interest paid and total amount paid.
Example
If you take out a $200,000 loan at 4.5% interest for 15 years, your monthly payment would be approximately $1,375. This includes $12,900 in total interest over the life of the loan.
Example Calculation
Let's walk through an example to illustrate how the calculator works.
| Input | Value |
|---|---|
| Loan Amount | $200,000 |
| Interest Rate | 4.5% |
| Loan Term | 15 years |
Using the mortgage formula:
- Convert the annual interest rate to a monthly rate: 4.5% ÷ 12 = 0.375% or 0.00375
- Calculate the number of payments: 15 × 12 = 180
- Plug the values into the formula:
M = $200,000 [ 0.00375(1 + 0.00375)180 ] / [ (1 + 0.00375)180 - 1 ]
- The calculation results in a monthly payment of approximately $1,375.00
Total interest paid over 15 years: $12,900.00
Total amount paid: $212,900.00
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. It typically offers lower monthly payments compared to a 30-year mortgage but results in higher total interest payments.
- How do I qualify for a 15-year fixed mortgage?
- Qualifying for a 15-year fixed mortgage is similar to qualifying for a 30-year mortgage. Lenders consider your credit score, income, debt-to-income ratio, and employment history. Some lenders may require a higher credit score for a 15-year term.
- What are the advantages of a 15-year fixed mortgage?
- The main advantages include lower monthly payments, potential tax benefits, and the ability to pay off the mortgage sooner. However, you'll pay more in total interest over the life of the loan.
- What are the disadvantages of a 15-year fixed mortgage?
- The disadvantages include higher total interest payments, increased risk of interest rate changes if you refinance, and the need to save for a larger down payment to qualify for a larger loan amount.
- Can I refinance a 15-year fixed mortgage?
- Yes, you can refinance a 15-year fixed mortgage, but you may face higher interest rates if you refinance before the end of the fixed-rate period. Some lenders offer special refinance programs for 15-year mortgages.