Financing tools
15-Year vs. 30-Year Mortgage
Higher payment, less total interest, faster equity build — or lower payment and more flexibility. See both sides of the tradeoff with your own numbers.
Direct answer: a 15-year loan costs more per month and meaningfully less over the life of the loan, building equity faster. A 30-year loan costs less per month and offers more flexibility, at the cost of more total interest if held to term. Enter your loan amount and rates to see the actual numbers.
Monthly payment difference
$768
The 15-year payment is $768 higher than the 30-year payment each month.
- 15-year payment
- $3,430
- 30-year payment
- $2,661
- Total interest — 15-year (full term)
- $217,344
- Total interest — 30-year (full term)
- $558,036
- Interest saved by choosing 15-year
- $340,691
Equity at year 7
- $258,581
- 15-year — remaining balance
- $364,590
- 30-year — remaining balance
- $106,008
- Extra equity from the 15-year loan
The 15-year loan builds equity faster because more of each payment goes to principal — this compares the two loans held for the same number of years, not their full terms.
Cash flow versus payoff speed
This is a budget decision as much as a math one.
The 15-year number that looks best on paper is only the right choice if the higher payment fits comfortably elsewhere in your budget — including reserves for maintenance, vacancy if it’s a rental, and life’s ordinary surprises.
Methodology
How this comparison works.
- Payment for each uses the standard amortization formula at its own rate and term — 15-year loans are typically priced at a lower rate than 30-year loans, so the fields are separate.
- Total interest is each loan’s full-term total — the classic 15-vs-30 comparison.
- Equity at your holding period compares both loans held for the same number of years, which is the fairer apples-to-apples comparison if you don’t expect to keep either loan to its full term.
Not modeled: what you could earn by investing the monthly payment difference elsewhere instead of paying down the loan faster — a real consideration, but a separate question from the loan math itself.
Worked example (hypothetical)
A $400,000 loan at 6.25% for 15 years costs roughly $3,430 a month; the same loan at 7% for 30 years costs roughly $2,661 — a difference of about $768 a month. Total interest over each loan’s full term is roughly $217,344 for the 15-year versus $558,036 for the 30-year — about $340,691 saved with the 15-year loan if held to term. Held 7 years instead, the 15-year loan shows roughly $106,008 more equity than the 30-year loan over the same period.
Downside cases
- A 15-year payment that strains monthly cash flow leaves less room for savings, emergencies, or other goals — the lower total interest cost doesn’t help if the payment becomes hard to sustain.
- A 30-year loan doesn’t prevent extra principal payments — some buyers choose the lower required payment for flexibility while still paying extra when they can.
National considerations
15-year rates are typically, though not always, priced lower than 30-year rates for the same borrower and loan program.
Utah considerations
Property taxes and insurance (typically escrowed alongside principal and interest) vary by Utah county and affect total monthly housing cost beyond this comparison.
Author: Todd McClean, Realtor® | Real Estate Investment Strategist, Mountainland Realty, Inc.. Reviewed July 19, 2026. This tool provides general real estate information and is not legal, tax, accounting, lending, securities, commodities, or financial-planning advice.
Next step
Deciding between loan terms?
A strategy review can help weigh payment comfort against long-term cost.