Compare the true cost of a 15-year versus a 30-year mortgage. Use the calculator below to see your monthly payment on a 30-year term, then adjust the Loan Term in the Advanced Assumptions to 15 years to see how much interest you could save.
Total Monthly Payment
$2,628
Over 30 years, you'll pay $431,018 in interest - more than 1.3x your loan amount.
Principal & Interest
$2,086
Taxes
$417
Insurance
$125
In year 1, 87% of your payment goes to interest and only 13% reduces your balance.
At this rate, it takes until year 21 before more than half your payment builds equity.
On your $320,000 loan, you'll pay $431,018 in interest - 1.3x what you originally borrowed.
Switching to a 15-year term would cut your interest in half - but raise your monthly payment.
→ Should I refinance?Estimates based on your inputs. Actual results may vary. Terms →
If the payment feels high - a lower home price or larger down payment will move the needle more than a slightly better rate.
If you're close to 20% down - getting there eliminates PMI and meaningfully reduces your monthly cost.
If you're comparing loan terms - a 15-year mortgage costs more monthly but saves significantly on total interest.
While a 15-year mortgage has higher monthly payments, the true cost difference lies in the total interest paid over the life of the loan. A 15-year mortgage can often save you tens or even hundreds of thousands of dollars in interest compared to a 30-year mortgage, making the true cost of the home significantly lower.
Monthly payments are higher on a 15-year mortgage because you are paying off the principal amount in half the time compared to a 30-year mortgage. However, 15-year mortgages often come with lower interest rates, which helps offset the higher principal payment slightly.
Getting a 30-year mortgage and making extra payments to pay it off in 15 years offers flexibility. If your budget gets tight, you can revert to the lower 30-year payment. However, a true 15-year mortgage typically offers a lower interest rate from the start, resulting in greater overall savings.
Enter your current loan and new rate - get a clear yes/no decision with break-even analysis.
Understand how your mortgage is amortized and see the breakdown of your payments over time.
Calculate how many years of payments you can skip by adding to your principal.
Estimates based on your inputs. Actual results may vary. Terms →