15-Year vs 30-Year Mortgage Calculator
See exactly how much you save — and what you trade — between a 15-year and 30-year mortgage. Includes the investing-the-difference scenario most calculators miss.
A 15-year mortgage is a home loan repaid over 15 years with lower rates (typically 0.5-0.75% less) but higher monthly payments. A 30-year mortgage has lower monthly payments but 2-3x more total interest over the loan life.
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15 vs 30-Year Mortgage Decision Support System
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15-Year or 30-Year Mortgage — Which Wins?
DIRECT ANSWERThe short answer: On a $320,000 loan at today's rates (6.30% 30-year vs 5.65% 15-year, Freddie Mac PMMS April 2026), the 15-year costs about $655 more per month but saves roughly $239,000 in lifetime interest and pays off the home 15 years sooner. The 15-year wins mathematically if you can afford the higher payment without compromising retirement savings or emergency reserves.
But the 30-year is often the better choice despite costing more in interest. A 30-year at 6.30% with voluntary extra principal payments matches the 15-year payoff — while preserving the option to scale back if income drops, you lose your job, or face unexpected expenses. That flexibility has real value.
The honest rule: Choose a 15-year if the higher payment still leaves housing under 25% of gross income AND you're maxing retirement accounts AND you have 6 months of PITI in reserves. Otherwise take the 30-year, pay extra when you can, and keep the flexibility.
How Do You Compare?
UPDATES LIVEShowing median interest savings from choosing 15-year. Click Calculate for your numbers.
15 vs. 30-Year Benchmarks
LIVE DATA fincalcs.coSource: Freddie Mac PMMS, MBA, CFPB 2026
15-Year vs 30-Year — The Numbers Side by Side
LIVE DATARates from the Freddie Mac Primary Mortgage Market Survey (PMMS), April 16, 2026. 15-year rates typically run 55–70 basis points below 30-year rates because lenders take less duration risk.
| Term | Rate (Apr 2026) | Monthly P&I ($320K) | Lifetime Interest | Total Paid |
|---|---|---|---|---|
| 30-year fixed | 6.30% | $1,980 | $393,000 | $713,000 |
| 15-year fixed | 5.65% | $2,635 | $154,000 | $474,000 |
| Difference | −0.65% | +$655/mo | −$239,000 | −$239,000 |
Source: Freddie Mac PMMS (MORTGAGE30US / MORTGAGE15US series via FRED), April 16, 2026. All calculations assume a $320,000 loan (20% down on a $400,000 home), no PMI, no refinance.
The real tradeoff: You pay $655 more per month for 15 years (total extra payments: $118,000) to save $239,000 in lifetime interest. Net savings: $121,000. But only if you stay the full 15 years and don't refinance.
Why This Choice Is Harder Than It Looks
The math favors 15-year. The psychology favors 30-year. On paper, a 15-year mortgage is cheaper, forced savings, and mathematically superior. In practice, the 30-year gives you options — and options have economic value that simple interest calculations don't capture.
Flexibility is worth something concrete. A 30-year at $1,980/month with voluntary extra payments can match a 15-year payoff — but if you lose your job in month 36, you can temporarily drop back to the $1,980 minimum. With a 15-year, the $2,635 is contractual. Miss it and you're in default.
The "invest the difference" argument. If you take the 30-year and invest the $655/month payment difference in a taxable brokerage at 7% annualized returns, after 15 years you'd have about $213,000. That's roughly the same as the interest savings from the 15-year route — but with a liquid investment account instead of paid-off home equity you can't easily access without a HELOC.
Where the 15-year clearly wins. High earners who've already maxed retirement accounts (401k + IRA + HSA), have 6+ months emergency fund, and want guaranteed risk-free "return" on paying off debt. Forced savings beat discipline for most people — a 15-year mortgage makes you save $655/month in home equity whether you want to or not.
Where the 30-year clearly wins. Anyone who hasn't maxed retirement yet, anyone with variable income, first-time buyers still building reserves, or anyone whose 15-year payment would push housing above 28% of gross. Preserve optionality first, optimize later.
The Monthly Cost of Picking 15 Over 30
SENSITIVITYExtra monthly payment for the 15-year, plus lifetime interest savings at the current 0.65% spread (30-year 6.30% vs 15-year 5.65%).
| Loan Amount | 30-yr P&I | 15-yr P&I | Extra/mo | Lifetime Interest Saved |
|---|---|---|---|---|
| $200,000 | $1,238 | $1,647 | $409 | $149,000 |
| $300,000 | $1,857 | $2,471 | $614 | $224,000 |
| $400,000 | $2,476 | $3,294 | $818 | $299,000 |
| $500,000 | $3,095 | $4,118 | $1,023 | $373,000 |
| $600,000 | $3,714 | $4,942 | $1,228 | $448,000 |
| $750,000 | $4,642 | $6,177 | $1,535 | $560,000 |
Key insight: The extra monthly cost scales roughly 33–35% of the 30-year payment. If you can absorb a 35% payment increase without squeezing retirement or reserves, 15-year is on the table. If you can't, 30-year plus voluntary extra payments is the disciplined alternative.
Invest-the-Difference: Does It Actually Beat the 15-Year?
MATH CHECKScenario: Take the 30-year at $1,980/mo, invest the $655/mo payment difference in a taxable brokerage for 15 years. Compare final position to the 15-year mortgage holder who owns the home outright.
| Market Return Assumption | Invested Balance (15 yr) | After 15% Tax Drag | 15-Year Advantage |
|---|---|---|---|
| 5% (conservative) | $175,000 | $149,000 | 15-year wins by $90,000 |
| 7% (historical) | $213,000 | $181,000 | 15-year wins by $58,000 |
| 8% (above historical) | $236,000 | $200,000 | 15-year wins by $39,000 |
| 10% (best case) | $286,000 | $243,000 | 30-year+invest wins by $4,000 |
Assumptions: $320K loan, 30-year at 6.30%, 15-year at 5.65%, $239K lifetime interest savings. Tax drag assumes ~15% long-term capital gains on invested gains at year 15.
The honest reading: At historical 7% market returns, the 15-year still wins by about $58K after tax — but only if you have the discipline to actually invest the difference. If you'd spend any of it instead, 15-year wins decisively. If you pay off the mortgage then invest the freed-up $2,635/mo for 15 more years, you end up with roughly $800K at 7% — substantially ahead of invest-the-difference.
How Both Loans Are Calculated
TRANSPARENT1. Monthly payment formula (same for both)
M = L × [r(1+r)^n] / [(1+r)^n − 1] where L is the loan amount, r is monthly rate (annual ÷ 12), n is total months (180 for 15-year, 360 for 30-year).
2. Lifetime interest comparison
LifetimeInterest = (M × n) − L The 15-year pays down principal twice as fast, so less money sits accruing interest. That's where the $239K savings comes from — not from the 0.65% rate difference alone.
3. Extra-payment equivalence
To match a 15-year payoff on a 30-year loan: pay the full 15-year monthly amount ($2,635 on $320K) from day one. You'll finish in roughly 16 years instead of 15 because the 30-year rate is 0.65% higher — but you keep the right to pay only $1,980 if needed.
4. Invest-the-difference math
FV = P × [(1+r)^n − 1] / r Future value of $655/month invested at 7% annualized for 180 months: ~$213,000. After ~15% long-term capital gains tax on gains: ~$181,000. Compare to 15-year interest savings of $239,000 → 15-year still wins by ~$58K after tax.
How This Choice Ripples Through Your Finances
CONNECTEDThe 15 vs 30 decision touches retirement, affordability, and emergency planning.
15-Year Readiness Matrix
Five gates. Pass all five, 15-year makes sense. Fail any one, go 30-year.
| Factor | Status | Benchmark | What To Do |
|---|---|---|---|
| Housing DTI | Gate 1 | 15-yr PITI ≤ 25% gross | If 15-year PITI pushes you above 28%, take 30-year. Under 25%, 15-year is safe. |
| Retirement savings | Gate 2 | Maxing 401(k)+IRA | Don't reduce retirement to afford 15-year. Employer match + Roth IRA come first. |
| Emergency reserves | Gate 3 | 6 months PITI in HYSA | 15-year has no flexibility — you need a bigger buffer than 30-year borrowers. |
| Income stability | Gate 4 | W-2, ≥2 years tenure | Freelance, commission, startup? Skip 15-year. Variable income needs the 30-year fallback. |
| Time horizon | Gate 5 | Staying 10+ years | If you'll sell in 7 years, the 15-year interest savings barely accrue. Take the 30-year. |
Five Mistakes in the 15 vs 30 Decision
| The Mistake | What It Actually Costs |
|---|---|
| Picking 15-year to "force saving" Choosing the contractual payment to force discipline | No flexibility when income drops The 15-year's $2,635 is legally required. Miss it and you're in default. The 30-year lets you fall back to $1,980 minimum, then resume extra payments later. |
| Reducing retirement to afford 15-year Cutting 401(k) from 15% to 6% to fit higher P&I | Losing employer match + compound growth A 401(k) match is a 100% instant return. Dropping below match to pay an extra $655/mo on mortgage is a terrible trade — mortgage saves 5.65%, match earns 100%. |
| Choosing 30-year with no plan to pay extra Taking 30-year and actually paying only 30-year minimum | Lose $239K in lifetime interest The 30-year only matches 15-year economics if you voluntarily pay extra principal. Without a disciplined extra-payment plan, you pay the full 30-year interest cost. |
| Refinancing from 15 back to 30 to "free up cash flow" Undoing the 15-year 5 years in | Closing costs + reset amortization Refi costs $6K+ and restarts the 30-year clock. Anything you saved in the first 5 years of the 15-year is largely undone. Better: ask for a temporary forbearance. |
| Picking by monthly payment, not all-in economics "15-year is $655 more, I'll just do 30-year" | Ignoring $239K lifetime swing $655/mo is $7,860/year. Over 30 years of the 30-year loan, that's not even the lifetime interest difference. Think in lifetime dollars, not just monthly cash flow. |
Sources: Freddie Mac PMMS, FRED MORTGAGE30US/MORTGAGE15US, CFPB mortgage origination data 2024, Federal Reserve Household Debt and Credit Report Q4 2025.
What Should You Do Next?
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15 vs 30 rate spreads, Fed decisions, and refi-trigger alerts every Monday.
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Learn More About 15 vs. 30-Year Mortgages
Things to Know
Essential concepts for understanding your results
Payment ComparisonHow much more is a 15-year payment vs 30-year?
A 15-year mortgage has payments approximately 40-50% higher than a 30-year on the same loan amount. On $300,000 at 6.0% (15yr) vs 6.5% (30yr): 15-year payment = $2,532/month, 30-year = $1,896 — a $636/month difference. But the 15-year rate is typically 0.5-0.75% lower, and total interest paid is dramatically less: $155,683 (15yr) vs $382,633 (30yr) — $226,950 in savings.
Interest SavingsHow much interest does a 15-year mortgage save?
A 15-year saves 55-65% in total interest compared to a 30-year. On $300,000: approximately $200,000-230,000 in interest savings. You also build equity 3-4x faster — after 5 years, the 15-year borrower has ~$95,000 in equity vs ~$25,000 on the 30-year. The combination of lower rate, faster principal paydown, and 15 fewer years of interest creates an enormous wealth difference over the loan term.
Who Should Choose 15When does a 15-year mortgage make sense?
Choose 15-year if: the higher payment is less than 25% of gross income, you have a fully funded emergency fund, you are already saving 15%+ for retirement, and you have no high-interest debt. The 15-year forces aggressive equity building — essentially a mandatory savings plan. It is NOT right if the higher payment would leave you unable to save for retirement or handle emergencies.
Hybrid StrategyCan you get 15-year benefits with a 30-year loan?
Yes — take a 30-year mortgage but make payments as if it were 15-year. You get the flexibility of lower required payments during financial stress while achieving the same payoff timeline when you can afford it. Downside: the 30-year rate is 0.5-0.75% higher, so total interest is slightly more than a true 15-year. But the safety net of lower minimum payments is valuable insurance against job loss or income disruption.
The Math Most People Miss
The debate is not just "pay less interest vs lower payment." The real question: what do you do with the monthly savings? If you invest the difference in the stock market, the 30-year often wins on total wealth because investment returns typically exceed mortgage rates. This calculator shows both scenarios.
When to Choose 15 Years
Pick the 15-year if you want guaranteed savings (no market risk), plan to retire soon, or the higher payment is under 25% of gross income. You also build equity faster for future HELOC access.
When to Choose 30 Years
Pick the 30-year for maximum flexibility. You can always make extra payments to pay it off faster, but you cannot reduce payments on a 15-year if times get tight. If you invest the difference, you often end up wealthier.
People Also Ask
How much interest do you save with a 15-year mortgage?
Is it better to get a 30-year and pay extra?
What is the rate difference between 15 and 30 year?
How to Use This Calculator
Enter your loan amount and the current interest rates for both 15-year and 30-year mortgages. The calculator shows the monthly payment difference, total interest paid over each term, and how much you save by choosing the shorter term. You can also enter your current 30-year mortgage details to see what refinancing to a 15-year term would look like.
Example: On a $350,000 mortgage at 6.0% (30-year) vs 5.5% (15-year), the 30-year payment is $2,098/month while the 15-year payment is $2,860/month — $762 more per month. But the 30-year loan costs $405,310 in total interest compared to $164,806 for the 15-year. That's $240,504 in interest savings by choosing the shorter term.
15-Year vs 30-Year: The Complete Comparison
This is one of the most consequential financial decisions homeowners make. Here's every factor to consider, with real numbers:
| Factor | 15-Year Fixed | 30-Year Fixed |
|---|---|---|
| Typical rate (2026) | 5.25-5.75% | 5.75-6.50% |
| Rate advantage | 0.50-0.75% lower | — |
| Monthly payment ($350K loan) | $2,860 | $2,098 |
| Monthly difference | $762/month more for 15-year | |
| Total interest paid | $164,806 | $405,310 |
| Interest savings | $240,504 saved with 15-year | |
| Equity at year 5 | $125,600 (36%) | $39,200 (11%) |
| Qualification difficulty | Harder — higher DTI impact | Easier — lower monthly obligation |
Total Interest by Loan Amount: 15-Year vs 30-Year
The interest savings scale dramatically with larger loan amounts. At current rates:
| Loan amount | 15yr interest (5.5%) | 30yr interest (6.25%) | You save |
|---|---|---|---|
| $200,000 | $94,175 | $243,162 | $148,987 |
| $300,000 | $141,262 | $364,743 | $223,481 |
| $400,000 | $188,349 | $486,324 | $297,975 |
| $500,000 | $235,437 | $607,905 | $372,468 |
| $750,000 | $353,155 | $911,858 | $558,703 |
On a $500K mortgage, the 15-year term saves $372,468 in interest — more than the original loan amount. This is the most powerful illustration of how term length affects total cost.
When Each Term Makes Sense
Choose the 15-year if: Your total housing cost (mortgage + tax + insurance) stays under 25% of gross income. You have a fully funded emergency fund (6 months of expenses). You're not sacrificing retirement contributions — maxing out your 401(k) and IRA should come before paying down a low-rate mortgage faster. The 15-year is ideal for buyers in their 40s-50s who want to enter retirement mortgage-free.
Choose the 30-year if: The 15-year payment would stretch your budget past 30% of gross income. You have other high-interest debt (credit cards, student loans above 6%). You want the flexibility to invest the $762/month difference in the market, where historical returns (8-10%) exceed the mortgage rate (6-7%). You can always make extra payments on a 30-year mortgage to pay it off in 20-22 years while keeping the safety net of lower required payments.
The middle-ground strategy: Take the 30-year mortgage for its lower required payment, but make the 15-year payment amount whenever you can afford it. This gives you the safety of lower minimum payments during tight months while still paying off the loan in 18-22 years. You get most of the interest savings without the rigid commitment.
Refinancing from 30-Year to 15-Year
If you already have a 30-year mortgage, refinancing to a 15-year can save substantial interest — especially if rates have dropped since your original loan. The key calculation is the break-even point: how many months until your closing costs ($3,000-$8,000) are recovered by lower interest payments.
Example: If refinancing from a 6.5% 30-year to a 5.5% 15-year saves you $380/month in interest but costs $5,000 in closing costs, you break even in 13 months. If you plan to stay in the home for 5+ years, the refinance is almost certainly worth it.