Calculate your monthly mortgage payment, total interest paid, and full amortization schedule. Works for any home loan amount, interest rate, and term.
A fixed-rate mortgage payment is calculated using the amortization formula, which spreads equal payments across the loan term such that each payment covers the month's interest and reduces the principal balance:
M = monthly payment, P = principal loan amount, r = monthly interest rate (annual rate ÷ 12), n = total number of payments (years × 12)
| Feature | 30-Year | 15-Year |
|---|---|---|
| Monthly payment | Lower | Higher (~40–50% more) |
| Total interest paid | Much higher | Roughly half |
| Interest rate | Higher | Lower (0.5–1% typically) |
| Build equity | Slow | Fast |
| Cash flow flexibility | Better | Less |
Example: $300,000 loan at 6.5% — 30-year payment: ~$1,896/mo, total interest ~$382,600. 15-year payment: ~$2,613/mo, total interest ~$170,300. Choosing 15 years saves ~$212,000 in interest.