Use this simple and accurate 15-Year Mortgage Calculator to estimate your monthly payment, total interest paid, and amortization schedule. A 15-year term is a powerful way to save significant amounts of interest over the life of your loan.
15-Year Mortgage Payment Calculator
Your Estimated Monthly Payment
$0.00Detailed Amortization Summary
15-Year Mortgage Payment Formula
M = P [ i(1 + i)ⁿ ] / [ (1 + i)ⁿ – 1 ]
Formula Source: Investopedia, The Balance
Variables Explained
- M: Your calculated monthly payment. This is the value solved by the calculator.
- P: The principal loan amount, which is the initial amount borrowed.
- i: The periodic interest rate (Annual Rate / 12 for monthly payments, or Annual Rate / 26 for bi-weekly).
- n: The total number of payments over the loan’s term (15 years * frequency per year).
What is a 15-Year Mortgage?
A 15-year mortgage is a home loan repaid over 180 months, instead of the standard 30-year term. This accelerated repayment schedule is one of the most effective financial strategies for homeowners, offering two major benefits: significantly lower total interest paid and faster equity build-up.
While the monthly payment (M) for a 15-year mortgage will be higher than a comparable 30-year loan, the shorter term results in tens or even hundreds of thousands of dollars saved on interest expenses. Furthermore, a 15-year loan often qualifies for a slightly lower interest rate than longer-term options, providing an additional layer of savings.
How to Calculate a 15-Year Mortgage Payment (Example)
- Determine the Principal (P): Suppose you borrow $300,000 (P).
- Set the Annual Rate (R): Assume an annual interest rate of 6.00%.
- Calculate Periodic Rate (i): For monthly payments (12 per year), divide the annual rate by 12 and 100: $i = 6\% / 12 / 100 = 0.005$.
- Determine Total Payments (n): For a 15-year loan paid monthly: $n = 15 \text{ years} \times 12 \text{ months/year} = 180$.
- Apply the Formula: Plug these values into the formula to solve for the monthly payment (M): $M = 300,000 \times [ 0.005(1.005)^{180} ] / [ (1.005)^{180} – 1 ]$.
- The Result: The monthly payment (M) would be approximately $2,531.63.
Related Calculators
- 30-Year Mortgage Calculator
- Mortgage Refinance Savings Calculator
- Amortization Schedule Generator
- Rent vs. Buy Calculator
Frequently Asked Questions (FAQ)
- What is the biggest advantage of a 15-year mortgage? The greatest benefit is the massive reduction in total interest paid. Because the principal is paid down much faster, you pay significantly less interest over the life of the loan compared to a 30-year term.
- Do I need a higher credit score for a 15-year mortgage? Lenders generally prefer borrowers with good credit for any mortgage, but a 15-year loan might have slightly stricter income or debt-to-income requirements due to the higher monthly payments.
- Are interest rates lower on 15-year mortgages? Typically, yes. Lenders usually offer a slightly lower interest rate (often 0.25% to 0.5% less) on 15-year fixed-rate loans because the risk of rate fluctuation is lower over a shorter period.
- Can I make extra payments on a 15-year mortgage? Absolutely. Most mortgages allow prepayments without penalty, which can shorten the term even further and save additional interest.