15 vs 30 Year Mortgage Calculator

Neither is universally better. A 15-year has a higher monthly payment but much less lifetime interest and a faster payoff. A 30-year has a lower, more flexible payment but costs more in interest and builds equity slower. Which one fits depends on your monthly cash flow, other financial goals, and how long you plan to stay in the home.

Lenders price the 15-year below the 30-year (commonly by 0.5%–0.875%) because the loan is paid off faster, which lowers the lender's interest-rate risk. The exact spread varies with the market.

On a typical loan it's often hundreds of thousands of dollars over the full term. The exact figure depends on the loan amount and the gap between the two rates, which this calculator shows line by line.

Yes, many people do. You give up the lower 15-year rate, but you keep the flexibility of the lower required 30-year payment if a month gets tight. If you have the discipline to make extra principal payments every month, this is a common middle-ground strategy.