On a $400,000 mortgage at 6%, a 15-year term costs $3,375 a month against $2,398 over 30 years, but saves $255,776 in interest.
- Interest, 15 years
- Extra interest, 30 years
| Amount | Payment, 15 years | Payment, 30 years | Interest, 15 years | Extra interest, 30 years | Interest, 30 years |
|---|---|---|---|---|---|
| $200,000 | $1,688 | $1,199 | $103,788 | $127,888 | $231,676 |
| $250,000 | $2,110 | $1,499 | $129,736 | $159,860 | $289,595 |
| $300,000 | $2,532 | $1,799 | $155,683 | $191,832 | $347,515 |
| $350,000 | $2,954 | $2,098 | $181,630 | $223,804 | $405,434 |
| $400,000 | $3,375 | $2,398 | $207,577 | $255,776 | $463,353 |
| $450,000 | $3,797 | $2,698 | $233,524 | $287,748 | $521,272 |
| $500,000 | $4,219 | $2,998 | $259,471 | $319,720 | $579,191 |
| $600,000 | $5,063 | $3,597 | $311,365 | $383,664 | $695,029 |
| $700,000 | $5,907 | $4,197 | $363,260 | $447,608 | $810,867 |
| $800,000 | $6,751 | $4,796 | $415,154 | $511,552 | $926,706 |
How it is computed
Payments use M = P × i ÷ (1 − (1 + i)^−n), with i the annual rate ÷ 12 and n = 180 or 360 months, at the same rate for both terms. Total interest = all payments − principal. Taxes and insurance are not included.
FAQ
Is a 15-year mortgage always better?+
It costs far less interest, but the higher payment leaves less room for savings and emergencies. A 30-year loan with extra payments keeps the flexibility.
Do 15-year mortgages have lower rates?+
Often, in the US. This table uses the same rate for both terms, so a lower 15-year rate would widen the savings.