15-Year vs 30-Year Mortgage: Payment and Interest Comparison

Choosing between a 15-year and a 30-year mortgage is one of the biggest decisions in home financing. The 30-year term lowers your monthly payment but increases total interest; the 15-year term raises the payment but can save hundreds of thousands in interest. Use the Mortgage Payment Calculator to compare both options with your numbers.

How Term Length Affects Payment

On a $300,000 loan at 6.5%, a 30-year mortgage has a principal-and-interest payment of about $1,896 per month. The same loan over 15 years has a payment of about $2,613—roughly $717 more per month. The shorter term means fewer payments and a larger share of each payment going to principal, so you build equity faster.

Total Interest Difference

Over 30 years you pay about $382,800 in interest on that $300,000 loan. Over 15 years you pay about $170,300—a difference of over $212,000. That saving is the main reason many borrowers choose a 15-year term when they can afford the higher payment.

When a 30-Year Can Make Sense

A 30-year term frees up cash flow for savings, investments, or other goals. Some borrowers take the 30-year loan and make extra principal payments when they can, gaining flexibility without committing to the full 15-year payment. Run both scenarios in the Mortgage Payment Calculator and decide based on your budget and goals.

Practical Takeaway

Compare 15-year and 30-year payments and total interest using your loan amount and rate in the Mortgage Payment Calculator. For more on how mortgage interest works, see how mortgage interest is calculated.