15-Year vs. 30-Year Mortgage Calculator
The 15-year mortgage saves more total interest — often $100,000–$200,000 on a $400,000 loan. The trade-off is a higher monthly payment. This calculator shows the exact difference in payments, total interest, and equity buildup side by side.
Enter your loan amount and the rates for each term to see the full comparison including equity milestones and the hybrid option (30-year at 15-year payment).
| Milestone | 30-Year Balance | 15-Year Balance | 15-Year Equity Advantage |
|---|
The True Cost Difference Between 15 and 30 Years
The difference in total interest between a 15-year and 30-year mortgage is staggering. On a $400,000 loan at today's typical rates (7.0% for 30-year, 6.5% for 15-year), the 30-year borrower pays approximately $558,000 in interest over the loan's life. The 15-year borrower pays approximately $207,000. The 15-year saves over $350,000 in interest — while paying a higher monthly rate for 15 years.
The rate advantage amplifies the savings. 15-year mortgages typically carry rates 0.5%–0.75% lower than 30-year mortgages because lenders face less default risk over a shorter period. This lower rate, combined with the shorter term, creates the dramatic interest savings.
The Monthly Payment Trade-Off
The 15-year's higher monthly payment is the primary barrier. On a $400,000 loan, the 15-year payment is approximately $820 more per month than the 30-year. That's real money — $9,840/year. The question isn't whether the 15-year saves more total interest (it always does at realistic rates), but whether the higher monthly payment fits your budget comfortably and doesn't crowd out other financial priorities.
| Metric | 30-Year (7.0%) | 15-Year (6.5%) |
|---|---|---|
| Monthly payment | $2,661 | $3,488 |
| Total interest | $558,000 | $227,000 |
| Interest saved | — | $331,000 |
| Balance at year 10 | $339,500 | $150,200 |
| Paid off | 2054 | 2039 |
The Hybrid Option: 30-Year Mortgage with 15-Year Payments
A popular approach: take the 30-year mortgage for its lower minimum payment commitment, but pay the 15-year amount each month. This gives you flexibility — if income drops, you can revert to the lower minimum — while producing a payoff timeline close to a 15-year. The catch: the 30-year rate is higher (typically 0.5%–0.75%), so you pay slightly more total interest than a true 15-year at the lower rate. But the flexibility has real value for variable-income households.
To model extra payments on your existing 30-year mortgage, use the Extra Mortgage Payment Calculator. For a side-by-side comparison of any two mortgage offers, see the Mortgage Comparison Calculator.
Frequently Asked Questions
Is a 15-year or 30-year mortgage better?
The 15-year saves dramatically more total interest and builds equity faster. The 30-year has a lower monthly payment, preserving cash for investing or other needs. At today's rates (6.5%–7.5%), the 15-year is typically the better pure financial choice. Choose 30-year if the lower payment gives you flexibility you need or if your mortgage rate is low enough that investing the difference beats the interest savings.
How much more is a 15-year mortgage payment?
Typically 30%–45% more per month than a 30-year on the same loan. On $400,000 at current rates, the 15-year costs approximately $820/month more. Over 15 years, you pay about $147,600 more in total payments — but save $331,000 in interest, for a net gain of about $183,000.
Are 15-year rates lower than 30-year?
Yes, typically 0.5%–0.75% lower. This rate advantage, combined with the shorter term, produces the dramatic interest savings. Always compare actual quoted rates from lenders, not assumptions — the spread varies with market conditions.
What if I take a 30-year but pay extra each month?
Paying a 30-year mortgage at the 15-year payment amount gives you a similar payoff timeline with lower required minimum payment (flexibility). The cost: you pay the higher 30-year rate on the entire balance, so total interest is slightly more than a true 15-year. For budget-variable households, the flexibility may be worth the small extra cost.
Who should get a 15-year mortgage?
Those who can comfortably afford the higher payment from stable income, people approaching retirement who want the mortgage paid off before retiring, those who prioritize debt freedom over investment returns, and anyone in a high-rate environment where paying less interest is clearly better than most investment alternatives.
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