Should you get a 15-year or 30-year mortgage? Compare monthly payments, total interest, total cost, and equity over time — side by side — so you can make the right choice for your budget.
A buyer purchases a $300,000 home with a $60,000 down payment (20%), financing $240,000. The 15-year rate is 5.5% and the 30-year rate is 6.5%.
15-Year: $1,960.89/mo — Total Interest: $112,960.00
30-Year: $1,516.96/mo — Total Interest: $306,105.60
The 15-year term saves over $193,000 in interest, but the monthly payment is about $444 higher. After 10 years, the 15-year borrower has over $106,000 more equity.
A buyer finances $400,000 (after 20% down on a $500,000 home). The 15-year rate is 5.75% vs the 30-year at 6.75%.
15-Year Payment: $3,320.62/mo — Total Interest: $197,711.60
30-Year Payment: $2,594.49/mo — Total Interest: $534,016.40
The 30-year payment is $726 lower each month, but costs over $336,000 more in total interest. The 15-year borrower builds home equity more than twice as fast.
A first-time buyer puts just 5% down ($15,000) on a $300,000 home, financing $285,000. The 15-year rate is 5.75% vs the 30-year at 6.75%.
15-Year: $2,364.04/mo — Total Interest: $140,527.20
30-Year: $1,848.57/mo — Total Interest: $380,485.20
With a smaller down payment, the 30-year term keeps monthly costs more manageable. However, the 15-year borrower saves nearly $240,000 in interest and reaches 20% equity much faster.
Choosing between a 15-year and 30-year mortgage is one of the biggest financial decisions a homebuyer makes. The shorter term offers lower total interest costs and faster equity building, while the longer term provides smaller monthly payments that may fit a tighter budget. Our comparison calculator helps you see the full picture side by side.
A 15-year mortgage typically requires a 30-50% higher monthly payment. Make sure the payment fits comfortably within your monthly budget before committing.
15-year mortgages usually have lower interest rates than 30-year mortgages because lenders face less risk over the shorter term. This amplifies your savings.
With a 15-year mortgage, you build equity much faster. This can help you refinance, sell, or tap into home equity for major expenses sooner.
The money you save on a 15-year mortgage could alternatively be invested. If you expect investment returns higher than your mortgage rate, a 30-year term may make sense.
A 30-year mortgage gives you the flexibility to make extra payments when you can, or keep payments low when money is tight. You can always pay more on a 30-year loan.
With a 15-year mortgage, you reach 20% equity (when PMI drops) much faster. If your down payment is under 20%, this can mean significant savings on mortgage insurance.
You have stable income, can afford the higher payment, want to minimize total interest, plan to stay in the home long-term, and are building retirement wealth through home equity.
You need a lower monthly payment to qualify, prefer cash flow flexibility, plan to invest the difference, are buying your first home, or expect to move within 5-10 years.
The most common question homebuyers face is whether to choose a 15-year or 30-year mortgage. Each has distinct advantages and the right choice depends on your financial situation, goals, and risk tolerance.
A 15-year mortgage offers a lower interest rate, dramatically less total interest paid, and faster equity building. However, the monthly payment is significantly higher — typically 30% to 50% more than a 30-year mortgage for the same loan amount. This can strain your monthly budget but saves you hundreds of thousands of dollars over the life of the loan.
A 30-year mortgage has a lower monthly payment, making it easier to qualify for more home and freeing up cash for other priorities like retirement savings, investments, or emergency funds. The trade-off is substantially more total interest paid over the life of the loan. Many homeowners use the flexibility of a 30-year term to make extra payments when they can, effectively paying it off faster without the obligation.
Enter your loan amount (home price minus down payment) and the interest rates for both 15-year and 30-year mortgages. Our calculator instantly computes monthly payments, total interest, total cost, and shows you how much the shorter term saves. It also generates a year-by-year equity comparison so you can see exactly how fast you build ownership under each option.
The recommendation card at the top of your results provides clear guidance based on your numbers. If the 15-year option saves significant money, you'll see a green recommendation. If the monthly payment difference is small but the interest savings are substantial, the calculator will highlight that.
Understanding the math behind mortgage terms helps you make a confident decision. Here's what the numbers reveal about the 15-year vs 30-year debate:
Both mortgages use the same amortization formula, but the 30-year term spreads payments over twice as many periods. Early payments on both loans are mostly interest, but the 30-year loan has a much longer "interest-heavy" phase.
On a $300,000 loan, a 15-year mortgage at 5.5% costs about $141,000 in total interest. The same loan at 6.5% over 30 years costs about $383,000 in interest — over $242,000 more.
After 5 years on a 15-year mortgage, you'll have paid off roughly 25% of the principal. On a 30-year mortgage, you'll have paid off only about 7%. The 15-year borrower builds equity over 3x faster.
If you invest the monthly savings from a 30-year mortgage at a 7-10% return, you may come out ahead despite paying more mortgage interest. This is why the 30-year term can be strategic for disciplined investors.
⚠️ Important Disclaimer: This 15-Year vs 30-Year Mortgage Comparison Calculator is for informational and educational purposes only. Results are estimates based on standard amortization formulas and do not account for property taxes, homeowners insurance, private mortgage insurance (PMI), HOA fees, closing costs, or other potential expenses. Interest rates shown may not reflect current market rates. Always consult with a licensed mortgage professional and review loan estimates carefully before making any financial decisions. This calculator does not provide financial advice.