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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The Math Most People Miss
Whether you are looking for a 15-year vs 30-year mortgage estimator, calculate 15-year vs 30-year mortgage, how to calculate 15-year vs 30-year mortgage, 15-year vs 30-year mortgage formula, free 15-year vs 30-year mortgage calculator, or 15-year vs 30-year mortgage mortgage — this free 15-year vs 30-year mortgage calculator provides accurate estimates to help you plan and make informed financial decisions.
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.