15-Year vs 30-Year Mortgage: Which Saves More?
Side-by-side monthly payments and total interest for 15-year and 30-year mortgages on common loan amounts, and how to choose.
A 15-year mortgage costs more each month but saves a huge amount of interest. A 30-year mortgage keeps the payment low and leaves more room in your budget. Here's what that trade looks like in real numbers.
Payment and total interest, side by side
Both columns use the same 6.5% rate so the comparison is fair. In real life, 15-year loans usually come with a lower rate than 30-year loans, which makes the 15-year option save even more.
| Loan amount | 30-yr payment | 15-yr payment | 30-yr interest | 15-yr interest |
|---|---|---|---|---|
| $200,000 | $1,264.14 | $1,742.21 | $255,088.98 | $113,598.65 |
| $300,000 | $1,896.20 | $2,613.32 | $382,633.47 | $170,397.98 |
| $400,000 | $2,528.27 | $3,484.43 | $510,177.95 | $227,197.30 |
| $500,000 | $3,160.34 | $4,355.54 | $637,722.44 | $283,996.63 |
When a 15-year mortgage makes sense
- The higher payment fits comfortably, with an emergency fund still in place.
- You want the house paid off before a goal, like retirement or kids' college.
- You value guaranteed interest savings over flexibility.
When a 30-year mortgage makes sense
- You need the lower payment to buy the home you want.
- Your income is uneven and you want breathing room.
- You'd rather invest the difference, or pay extra when you can.
The middle path
Take the 30-year loan for its lower required payment, then pay extra toward principal when you can. Most mortgages allow it with no penalty (check yours). You get the flexibility of 30 years with much of the savings of 15. Use the mortgage calculator to include taxes and insurance for a full monthly picture.
For general information only, not financial advice. Numbers are estimates from our calculators using the assumptions stated.