How to Use
Enter the home purchase price or the amount you plan to borrow after your down payment.
Input the annual interest rate you have been quoted - or use current average 15-year rates as a benchmark.
The loan term is fixed at 15 years (180 months); confirm this matches your loan offer.
Instantly view your estimated monthly principal-and-interest payment in real time.
Review the total interest paid figure and compare it to the 30-year mortgage calculator to quantify your savings.
Adjust the home price or interest rate to model different purchase scenarios before committing.
What Is This Tool?
A 15-year mortgage is a home loan you repay in half the time of a traditional 30-year mortgage. The trade-off is clear: your monthly payment will be 30–50% higher, but you pay roughly half the total interest over the life of the loan. Lenders also typically offer interest rates 0.5–0.75% lower on 15-year loans compared to 30-year loans, compounding the savings further. Beyond the interest math, a 15-year mortgage builds home equity at nearly twice the pace - meaning you own more of your home sooner. This equity is a significant financial asset if you ever need to sell, refinance, or access a home equity line of credit. For borrowers with stable, high incomes, it is one of the most efficient paths to building long-term wealth through real estate.
Why It Matters
The difference between a 15-year and 30-year mortgage is not just about paying off sooner - it is about the total dollars that leave your pocket. On a $300,000 loan at 6%, a 30-year mortgage costs roughly $347,000 in interest alone. The 15-year equivalent costs around $155,000 - a difference of nearly $192,000. For homeowners who can absorb the higher payment, that gap is money that stays in their household. A 15-year mortgage also eliminates housing debt before retirement for many buyers, removing a large fixed expense exactly when income may decrease.