Home / Mortgage Calculators / 15 vs 30 Year Mortgage
15 vs 30 Year Mortgage Calculator
Compare payments, total interest, and equity growth side by side — then see which loan term wins for your situation
Quick Overview
Who Should Use This
Homebuyers deciding between a 15 and 30-year mortgage term, and homeowners considering refinancing to a shorter term to dramatically reduce total interest paid.
Purpose
Compare total cost, monthly payment, interest paid, equity growth, and payoff timeline between 15 and 30-year mortgages to find which term is right for your financial situation.
Example
$320K loan — 30-year at 6.75%: $2,076/month, $427K interest total. 15-year at 6.0%: $2,703/month, $166K interest total. Pay $627 more/month, save $261K over the loan's life.
Loan Parameters
Pro Tip: 15-year rates are typically 0.5–0.75% lower than 30-year rates. This rate advantage, combined with the shorter term, creates massive total interest savings — often $200,000+ on a typical loan.
Comparison Results
Interest Savings with 15-Year
$0
over the life of the loan
15-Year Fixed
$0
per month (PITI)
P&I Only$0
Total Interest$0
Total Cost$0
Equity @ 5 yr$0
Equity @ 10 yr$0
30-Year Fixed
$0
per month (PITI)
P&I Only$0
Total Interest$0
Total Cost$0
Equity @ 5 yr$0
Equity @ 10 yr$0
Monthly Payment Difference
$0
more per month for the 15-year
Total Interest Comparison
Equity Growth Over Time
| Year | 15-Year Equity | 30-Year Equity | Equity Gap |
|---|
How to Use
How to Compare Mortgage Terms
Get your side-by-side comparison in 4 easy steps
1
Enter Home Price
Input the purchase price and your down payment amount or percentage. 20% down avoids PMI costs for both loans.
2
Enter Both Rates
Input your quoted 15-year and 30-year rates. The 15-year is typically 0.5–0.75% lower. Check current rates from 2–3 lenders.
3
Add Taxes & Insurance
Property taxes and insurance are the same for both loans — they're based on the home, not the term. Include them for accurate totals.
4
Review the Comparison
See total interest savings, monthly payment difference, equity growth at every milestone, and which term fits your financial goals.
15 vs 30 Year Mortgage: The Full Picture
The choice between a 15-year and 30-year mortgage is one of the most significant financial decisions a homeowner makes. The difference isn't just time — it affects your monthly cash flow, total interest paid, how quickly you build equity, and your financial flexibility for decades.
On a $320,000 loan, the 15-year saves roughly $250,000 in interest but costs $600+ more per month. That's a real trade-off worth modeling carefully before committing.
This calculator shows the full comparison: payments, total cost, equity at every milestone, and the compound effect of the rate difference between the two products.
When Each Term Makes Sense
- Choose 15-year if: You can comfortably afford the higher payment, plan to stay 10+ years, and prioritize wealth building over cash flow flexibility.
- Choose 30-year if: The higher payment would strain your budget, you plan to move within 7–10 years, or you want to invest the payment difference in higher-returning assets.
- The best compromise: Get a 30-year loan but pay extra principal each month. You get flexibility, and if you consistently pay at the 15-year level, you'll pay it off early while keeping the safety net of a lower required payment.
Key Comparisons
What Really Matters in This Decision
The numbers behind choosing your mortgage term
💰
The Interest Savings
On a $320K loan, a 15-year at 6.00% vs 30-year at 6.75% saves $250,000+ in total interest. That's money that stays in your pocket instead of going to the bank — a life-changing financial difference.
📈
Equity Growth Speed
After 5 years, a 15-year mortgage builds 4–5x more equity than a 30-year. This accelerated equity means faster access to HELOCs, less PMI exposure, and stronger financial security.
🔄
Rate Advantage
15-year rates are 0.5–0.75% lower than 30-year rates because lenders take on less risk. This lower rate compounds the savings — you pay a lower rate AND for fewer years.
🛡️
Cash Flow Risk
The 15-year's higher required payment leaves less room for emergencies. A 30-year gives flexibility — you can always pay more, but can't pay less than the minimum if money gets tight.
🏡
Retirement Planning
Paying off a mortgage in 15 years means entering retirement debt-free if you buy at 40–45. Owning your home free and clear dramatically reduces retirement income requirements.
📊
Invest vs Pay Down
If your mortgage rate is below your expected investment return, a 30-year + investing the difference may win mathematically. But the guaranteed savings of a 15-year beats a hypothetical investment return for most homeowners.
Common Questions
15 vs 30 Year Mortgage FAQ
The monthly payment difference depends on the loan amount and rate spread, but a good rule of thumb is roughly 30–40% more per month for the 15-year.
Example on a $320,000 loan:
- 15-year at 6.00%: $2,702/month P&I
- 30-year at 6.75%: $2,076/month P&I
- Difference: $626/month more for the 15-year
The key insight: that $626/month extra saves you over $260,000 in total interest — roughly $416 in interest savings for every $1 of extra monthly payment. That's an extraordinary return.
Total interest comparison on a $320,000 loan:
- 15-year at 6.00%: ~$166,000 total interest
- 30-year at 6.75%: ~$427,000 total interest
- Savings: ~$261,000
The savings come from two compounding sources: (1) you borrow for half the time, and (2) you get a lower interest rate on the 15-year. Both factors multiply together to create dramatic total interest savings.
On larger loans, the savings are proportionally higher. A $600,000 loan would save $400,000+ in interest by choosing 15 years.
Yes — because the required monthly payment is 30–40% higher, you need a higher income to qualify. Lenders use the same DTI rules for both:
- Front-end DTI: Housing costs ≤ 28% of gross income
- Back-end DTI: Total debt ≤ 36–43% of gross income
Income required to qualify (rough estimate):
- $320K loan, 15-year: Need ~$115,000+ gross annual income
- $320K loan, 30-year: Need ~$88,000+ gross annual income
This income gap is why many buyers who can't qualify for a 15-year start with a 30-year and then refinance or make extra payments once their income grows.
Refinancing from 30-year to 15-year makes sense if:
- You can comfortably handle the higher payment
- Current rates are lower than your existing rate
- You'll stay in the home long enough to recoup closing costs (typically 2–4 years)
- You have significant equity (20%+ to avoid PMI on the new loan)
The break-even calculation:
- Closing costs on refinance: $3,000–$8,000 typically
- Monthly savings from lower rate: varies
- Break-even: Closing costs ÷ Monthly savings = Months to break even
If you're 10+ years into a 30-year mortgage, recasting or making extra payments is often better than refinancing, as you'd be restarting the amortization clock.
Yes, and this "hybrid approach" is popular for good reason:
- Get a 30-year mortgage for the lower required payment
- Pay extra principal each month to match the 15-year payoff pace
- If financial hardship hits, drop back to the minimum 30-year payment
The tradeoff: You don't get the lower 15-year interest rate. On a $320K loan, the 0.5–0.75% rate difference costs you approximately $25,000–$40,000 in extra interest even if you pay it off in 15 years.
The hybrid approach is ideal for: people with variable income, those early in their careers expecting income growth, or anyone who values maximum financial flexibility.
Equity built through payments on a $320,000 loan (excluding appreciation):
- After 5 years — 15-year: $82,500 | 30-year: $19,200
- After 10 years — 15-year: $185,000 | 30-year: $44,500
- After 15 years — 15-year: $320,000 (paid off!) | 30-year: $81,000
The dramatic equity difference means 15-year borrowers can access home equity for investments, emergencies, or retirement significantly earlier. By year 15, the 15-year borrower owns their home free and clear while the 30-year borrower still has $239,000 left to pay.
Keep Exploring
Related Calculators
Tools that work well with this calculator