20 vs. 30 Year Mortgage
Use this calculator to compare these two mortgage terms, and let us help you decide which term is better for you.
How the 20 vs. 30 year mortgage calculator works
It runs the same loan over a 20-year and a 30-year term so you can weigh a moderate payment increase against the interest a decade of extra payments adds. The 20-year is a middle path between the aggressive 15-year and the low-payment 30-year.
Worked example: with loan amount of $300,000, 20-year rate of 6.30% and 30-year rate of 6.60%, the 20 vs. 30 year mortgage shows interest saved with the 20-year of $161,383.
- 20-year payment
- $2,201.54
- 20-year total interest
- $228,369
- 30-year payment
- $1,915.98
- 30-year total interest
- $389,752
The formula
Both terms use the amortization formula Payment = P × r ÷ (1 − (1 + r)⁻ⁿ); the result compares monthly payment and lifetime interest between them.
Results are estimates for educational purposes and are not financial advice. Confirm exact figures with your lender, plan administrator or advisor.
Questions about the 20 vs. 30 year mortgage
Who is a 20-year mortgage best for?
Borrowers who want to be debt-free sooner and save meaningful interest, but find the 15-year payment too tight. It splits the difference.
How much more is the 20-year payment?
Typically a few hundred dollars more per month than a 30-year on the same loan, in exchange for being mortgage-free a decade earlier and saving substantial interest.
Does a 20-year loan have a lower rate than a 30-year?
Usually slightly lower, because the lender's money is at risk for less time. The calculator lets you set each rate to match your quotes.
Is the 20 vs. 30 Year Mortgage free to use?
Yes. Every calculator on FinCalculators is completely free, with no sign-up, login or paywall. You can run as many scenarios as you like.