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    15‑Year vs 20‑Year Mortgage Calculator

    Updated: January 27 2026 • 6 min read

    Written by Bennett Leckrone
    Bennett Leckrone

    Written by
    Bennett Leckrone
    Writer / Reviewer / Expert

    Bennett Leckrone is the editorial manager and an analyst for Lower. He specializes in making complicated mortgage topics accessible for consumers. That includes both in-depth product guides and in-depth analysis on what economic moves mean for homebuyers and refinancers. He was previously a business reporter with a focus on higher education and fintech at BestColleges. In that role, he reported on the development of fintech and AI curriculum, as well as the rapidly changing nature of finance education. He also wrote guides to help business students navigate AI and online education. He also reported on state politics at Maryland Matters, with a focus on how policy affected people and businesses. He holds a bachelor of science in journalism degree from Ohio University.
    Our Editorial Standards

    Key Takeaways

    • A 20 year mortgage generally has lower monthly payments than a 15-year mortgage.
    • But that comes at the cost of higher total interest over the life of the loan.
    • You can use our calculator to compare different scenarios.
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    Choosing between a 15-year and 20-year fixed mortgage comes down to one core trade‑off: monthly payment size versus total interest cost.

    Because you pay a lower rate for fewer years, a 15‑year mortgage almost always reduces total interest more than a 20‑year term, often by tens of thousands of dollars over the life of the loan.

    The flip side is affordability on a month-to-month basis: A 20‑year term keeps payments more manageable while still shaving years (and interest) off the more popular 30‑year mortgage.

    15-Year vs. 20-Year Mortgage Calculator

    You can use our calculator below to compare different rates and scenarios across loan terms.

    Our calculator works by measuring principal and interest payments based on different loan amounts and mortgage rates over time. It shows you both your total interest paid, estimated monthly payments, and your equity built up over time.

    Keep in mind that this calculator is only illustrative and only shows principal and interest payments. To get a quote based on your personal situation, you’ll need to connect with an expert loan officer.

    Equity After 10 Years Mortgage Calculator

    Compare how much equity you build after 10 years across 10-, 15-, 20-, and 30-year fixed-rate loans — and visualize how much you paid to interest vs. principal in that decade.

    How the math works (what this calculator is doing)
    • Loan amount = Home price − (Down payment % × Home price).
    • Monthly payment (P&I) uses a standard fixed-rate amortization formula.
    • After 10 years, the calculator adds up principal paid and interest paid for the first 120 payments (or fewer if the loan ends sooner).
    • Remaining balance after 10 years comes from the amortization schedule at month 120 (or month N if the loan is shorter).
    • Equity after 10 years assumes the home value is flat and is calculated as: Home price − Remaining balance. (So it includes your down payment + principal paid.)
    • Charts show (1) equity after 10 years and (2) principal vs. interest paid over the first 10 years.

    This is principal + interest only (excludes taxes, insurance, HOA, PMI, and closing costs).

    Inputs

    Interest rates by term (fixed)
    10-year rate (%)
    15-year rate (%)
    20-year rate (%)
    30-year rate (%)
    Get Results
    Educational estimate only. Principal + interest only (excludes taxes, insurance, HOA, PMI, closing costs). Assumes fixed-rate amortization with monthly payments.

    Results after 10 years

    Equity after 10 years

    Principal vs. interest paid (first 10 years)

    Shows totals paid toward principal vs. interest over the first 10 years (or fewer months if the loan ends sooner).

    Understanding 15-Year vs. 20-Year Mortgage Terms

    A mortgage term is the fixed length of time, typically 15, 20, or 30 years, over which you agree to repay your home loan with regular monthly payments of principal and interest.

    The term directly affects how much you pay each month and how much interest you’ll pay overall.

    Shorter terms usually carry higher monthly payments but much less total interest because the balance is paid down faster, and interest has fewer years to compound. Longer terms allow for lower monthly payments but increase the cumulative interest cost.

    Put simply, a shorter mortgage term means lower total interest because you repay principal more quickly and give interest less time to accrue, all else equal.

    Comparing Interest Rates for 15‑Year and 20‑Year Mortgages

    Lenders typically offer lower interest rates on shorter terms, reflecting less risk and a quicker repayment timeline.

    Recent averages illustrate the gap. The Freddie Mac Primary Mortgage Market Survey (PMMS) has recently shown 15‑year fixed rates around 5.38% and 30‑year fixed near 6.06%. For 20‑year fixed loans, Investopedia’s national rate roundup has reported about 6.26%.

    Mortgage Term

    Average Interest Rate

    15-Year

    5.38%

    20-Year

    6.26%

    30-Year

    6.06%


    Sources: Freddie Mac PMMS for 15‑ and 30‑year benchmarks; Investopedia for 20‑year national averages.

    The practical takeaway is that a lower rate plus fewer years dramatically amplifies lifetime interest savings on a 15‑year loan.

    Pros and Cons of 15‑Year Mortgages

    A 15-year loan is best for buyers or refinancers with strong, predictable income who prioritize minimizing interest and accelerating payoff.

    Pros:

    • Much lower total interest paid over the life of the loan.
    • Typically lower average interest rate than longer terms.
    • Fastest equity build and quickest path to outright ownership.

    Cons:

    • A higher monthly payment that can constrain cash flow and crowd out other goals.
    • Harder to qualify due to a higher payment relative to income (DTI sensitivity).

    Pros and Cons of 20‑Year Mortgages

    A 20-year mortgage is best for borrowers who want a faster payoff than 30 years but can’t comfortably absorb the 15‑year payment.

    Pros:

    • Lower monthly payments than a 15‑year, making qualification and budgeting easier.
    • Pays down faster than a 30‑year, saving interest and building equity more quickly.

    Cons:

    • Higher rate and more total interest than a 15‑year.
    • Less widely available. Fewer lenders actively market this term.

    How to Choose Between a 15‑Year and 20‑Year Mortgage

    Here are some factors to consider if you’re weighing a 15-year versus a 20-year mortgage:

    • Payment comfort: Could you make the 15‑year payment without stretching your budget or cutting essential savings (emergency fund, retirement, childcare, tuition)?
    • Interest trade-off: Do the lifetime interest savings of a 15‑year outweigh the near‑term hit to monthly cash flow?
    • Stability and horizon: How stable is your income? Any big expenses ahead? How long do you plan to stay in the home?
    • Flex strategy: If the 15‑year is too tight, consider a 20‑ or 30‑year and make disciplined extra principal payments. Many experts prefer this approach over over‑stretching for a term that stresses your budget.
    • Refinance optionality: You can refinance to a shorter term later if rates fall or your cash flow improves.

    The Bottom Line

    A 20-year mortgage is generally seen as a middle ground between the more common 30-year and 15-year mortgages. It comes with lower monthly payments than a 15-year mortgage at the cost of higher total interest paid over the life of the loan, although its lifetime interest totals are still lower than a 30-year mortgage.

    Frequently Asked Questions

    Is a 15-year mortgage always a better deal than a 20-year mortgage for interest savings?

    Yes. A 15‑year almost always results in lower total interest than a 20‑year because of lower rates and fewer years of interest.

    How much higher is the monthly payment on a 15-year vs 20-year mortgage?

    Often hundreds of dollars more per month for the same loan amount, so confirm the 15‑year payment won’t strain your budget.

    Why do some lenders not offer 20-year mortgages?

    Because 15‑ and 30‑year products dominate consumer demand and marketing; the 20‑year is a niche “middle‑ground” option.

    Can I refinance from a 20-year to a 15-year mortgage later?

    Yes. If rates drop or your income rises, refinancing into a shorter term can accelerate payoff and reduce total interest.

    Which builds home equity faster: 15-year or 20-year fixed?

    The 15‑year builds equity faster because more of each payment goes to principal from the start.