Loan Term Comparison

30-Year vs 15-Year Mortgage: Which Is Better?

George Smith — Founder, Klickify Agency

You are buying a $400,000 home. The lender gives you two options: a 30-year mortgage at 6.8% or a 15-year mortgage at 6.2%. The 15-year rate is lower — a full half point. You want to save on interest. But the monthly payment on the 15-year is much higher. You are not sure if you can afford it. You search for a comparison online, but every site pushes you to "talk to a lender" who will almost certainly recommend the 30-year because it is easier to qualify for.

Most online mortgage calculators are designed to keep you on the 30-year path. Lenders make more money from 30-year loans because you pay interest for twice as long. Bankrate, NerdWallet, and LendingTree all have 30-year as the default. Their calculators do not show you the brutal math of the 15-year unless you manually change the term. And even then, they make the 15-year look scary by highlighting the higher monthly payment without showing the massive interest savings.

The decision between a 30-year and a 15-year mortgage is not just about monthly cash flow. It is about your stage of life, your other financial goals, and your tolerance for risk. I am going to show you the real numbers for a $420,000 home (the 2026 median) with 20% down. Then you can decide which path makes sense for you.

The Real Numbers: 30-Year vs 15-Year on a $420,000 Home

Let me lay out the exact math. Home price: $420,000. Down payment: 20% ($84,000). Loan amount: $336,000. For a 30-year fixed at 6.8% — close to the average tracked in Freddie Mac's Primary Mortgage Market Survey — the monthly principal and interest payment is $2,191. Total interest paid over 30 years: $453,000. Total paid (principal + interest): $789,000. For a 15-year fixed at 6.2%, the monthly principal and interest payment is $2,869. That is $678 more per month. Total interest paid over 15 years: $180,000. Total paid: $516,000.

The difference in total interest is $273,000. That is real money. That is a year of salary for many people. If you can afford the extra $678 per month, the 15-year saves you nearly three-quarters of a million dollars over the life of the loan? Wait, $273,000, not $750,000. Still huge. But here is the catch. That $678 per month invested in the stock market at an average 7% return over 15 years would grow to about $210,000. So the opportunity cost is real. If you are a disciplined investor, you might come out ahead by taking the 30-year and investing the difference.

But most people do not invest the difference. They spend it. The 30-year gives you flexibility. If you lose your job or have an emergency, you can drop down to the lower $2,191 payment. With the 15-year, you are locked into $2,869. That extra $678 per month is a commitment. For a dual-income household with stable jobs, the 15-year might be worth it. For a single buyer or someone with variable income, the 30-year is safer.

Let me add one more scenario. What if you take the 30-year but make extra payments equal to the 15-year payment? You would pay $2,869 per month on the 30-year loan. That extra $678 goes straight to principal. You would pay off the 30-year loan in about 15.5 years — slightly longer than the 15-year term. Total interest paid would be about $190,000, which is $10,000 more than the 15-year loan at 6.2%. The difference is because the 15-year has a lower interest rate. So if you can qualify for the lower rate, the 15-year is mathematically better. But many lenders offer the same rate for both terms, in which case the math flips.

Step-by-Step: Compare 30-Year and 15-Year Using the Calculator

Here is how to run the numbers for your specific situation without giving up your email.

1. Go to trulyfreemortgage.com and select the 30-year vs 15-year comparison tool

The tool is built into the main mortgage calculator. You will see a toggle or two input fields side by side.

2. Enter your home price and down payment

Use the same numbers for both scenarios. For example, $420,000 home with $84,000 down.

3. Enter the 30-year interest rate

Current average is 6.8%. But you can get a slightly lower rate for a 15-year. The spread is typically 0.5% to 0.75%. Enter 6.8% for 30-year and 6.2% for 15-year.

4. Click "Compare"

The calculator will show side-by-side monthly payments, total interest, and payoff date. It will also show the monthly payment difference.

5. Look at the total interest difference

On a $336,000 loan, the difference is about $273,000. That is the cost of the 30-year term. Ask yourself: is the lower monthly payment worth $273,000 over 30 years?

6. Estimate a refinance break-even manually

The Scenario Comparison view does not compute refinance closing costs — take the monthly savings from step 5 and divide your expected closing costs by that number to estimate the break-even month. Generally, if rates drop 1%, refinancing is worth investigating.

7. Test a middle ground with Extra Monthly Payment

Switch to the standard calculator, set up the 30-year loan, and try different amounts in the "Payoff Acceleration" field to see how much extra you would need to pay to approach a 15-year payoff timeline. You might find that an extra $300 per month cuts your term from 30 to about 20 years.

8. Compare the two full amortization schedules one at a time

The standard calculator shows one full amortization schedule at a time (there is no side-by-side or downloadable version). Run the 30-year numbers, note the balance at month 60, then switch the term to 15 years and note the balance at the same month to see the equity difference.

The Lead-Gen Problem With Free Mortgage Calculators

Bankrate's 30-year vs 15-year comparison page is designed to push you toward a lender. The page has a large banner: "See Today's Rates." When you click it, you enter your zip code, email, and phone number. That lead is sold to multiple lenders. Bankrate earns commission on any loan that closes. They do not care if you choose the 30-year or 15-year. They just want you to click.

NerdWallet's comparison tool is slightly better. They show real rate data from partner lenders. But to see the rates, you must provide your contact information. That information goes to the lenders listed. You will get calls from each of them. NerdWallet earns a fee per lead, typically $50 to $200.

The most misleading are the "calculator" sites that are actually lead generation companies. They have names like "MortgageCalculator.org" and "CalculateMyMortgage.com." These sites are owned by lending networks. Every input you type is tracked and saved. Even if you do not click "submit," they have your IP address and the numbers you entered. They can match that data to your identity through third-party data brokers.

Truly Free Mortgage Calculator does not track your inputs. There is no lead form. No "compare rates" button. No lender network. The only way I make money is from display ads on the page. You can run as many comparisons as you want, and your phone will never ring. That is the difference between a tool and a trap.

Compare 30-Year vs 15-Year Free

No account. No email. Runs in your browser.

Frequently Asked Questions

Is a 15-year mortgage always better if you can afford the payment?

Not always. The 15-year locks you into a higher payment. If you lose your job or have a medical emergency, you cannot easily reduce that payment. The 30-year gives you flexibility. You can always pay extra on the 30-year to mimic a 15-year payoff. But you cannot pay less on the 15-year. So the 30-year is safer. Only choose the 15-year if you have a large emergency fund (6+ months of expenses) and stable income.

How much does a 1% lower rate save on a 15-year vs 30-year?

On a $300,000 loan, a 1% rate difference (6.8% vs 5.8%) on a 15-year term saves about $30,000 in total interest. But the monthly payment difference is about $200. You have to decide if the savings justify the higher payment.

Can I refinance from a 30-year to a 15-year later?

Yes. Many people buy with a 30-year, then refinance to a 15-year when their income increases. Refinancing costs 2-5% of the loan amount in closing costs. On a $300,000 loan, that is $6,000 to $15,000. You need to stay in the home long enough for the interest savings to exceed those costs. The break-even is usually 3-5 years.

What is the average rate spread between 15-year and 30-year in 2026?

Typically 0.5% to 0.75% lower for the 15-year. As of June 2026, 30-year average is 6.8%, 15-year is 6.2%. The spread narrows when rates are high and widens when rates are low. In 2021 when 30-year rates were 3%, 15-year rates were around 2.5%.

Should I take a 30-year mortgage if I plan to sell in 5 years?

Yes. The 15-year makes no sense for short-term ownership because the higher payment does not give you enough time to recoup the interest savings. On a 5-year hold, the 30-year is cheaper per month, and you will not pay the full 30 years of interest anyway.

How does the 30-year vs 15-year decision change with a higher down payment?

A larger down payment reduces the loan amount, which reduces the monthly payment difference. On a $200,000 loan instead of $336,000, the 30-year payment is $1,304, and the 15-year is $1,708. The difference is $404 per month, not $678. The total interest difference is $162,000 instead of $273,000. The 15-year is still attractive, but the cash flow impact is smaller.

Run the comparison yourself. Enter your numbers. See the real dollar difference. Then decide what works for your budget and your sleep-at-night factor.

Figures on this page are for educational purposes only. Rates, tax rates, and insurance costs vary by lender, location, and borrower profile. Consult a licensed lender for loan-specific figures. Truly Free Mortgage Calculator does not collect personal data and does not connect users with lenders.

Related Guides

Extra Mortgage Payment Calculator

How extra payments shave years off your loan.

Amortization Schedule Explained

See exactly where your money goes every month for 30 years.

Should I Refinance in 2026?

The break-even math on refinancing your current loan.

WRITTEN BY

George Smith

Founder, Klickify Agency

[email protected]LinkedIn

George builds free, client-side mortgage and financial calculators with transparent, formula-based methodology and zero data collection. Founder of Klickify Agency. Not a licensed financial advisor or loan officer — figures on this site are educational estimates; consult a licensed lender for loan-specific guidance.