15-Year vs. 30-Year Mortgage: Which Saves You More?
A side-by-side comparison of 15-year and 30-year mortgage terms on the same loan amount — monthly payment, total interest, and which one actually fits your budget.
The loan term you choose changes your monthly payment and your total interest cost dramatically — often by hundreds of thousands of dollars on the same loan amount.
Side-by-side on a $400,000 loan at 7%
| Term | Monthly payment (P&I) | Total interest paid |
|---|---|---|
| 15 years | $3,595.31 | $247,156 |
| 30 years | $2,661.21 | $558,036 |
The 15-year term costs $934.10 more per month but saves roughly $310,879 in total interest — because it combines half the repayment time with (typically) a meaningfully lower interest rate than a 30-year loan.
When a 30-year term makes more sense
- Your budget needs the lower, more flexible monthly payment.
- You'd rather invest the payment difference elsewhere, if it can realistically outperform the interest saved.
- You expect income growth or plan to refinance or move before the loan matures.
When a 15-year term makes more sense
- You can comfortably afford the higher payment without straining your budget.
- Minimizing total interest and building equity fast matters more to you than payment flexibility.
- You're closer to retirement and want the home paid off on a shorter horizon.
There's also a middle path: take a 30-year loan for payment flexibility, but voluntarily pay extra each month as if it were a 15-year loan — see how extra payments shorten a loan for the math on that approach, which keeps the lower required payment as a safety net.
Compare your own loan amount and rate on both terms using the Mortgage Calculator.