Mortgage comparison: 15 years vs. 30 years
Determining which mortgage term is right for you can be a challenge. With a 15 year mortgage you
will pay significantly less interest, but only if you can afford the higher monthly payment.
Use this calculator to compare these two mortgage terms, and let us help you decide which
term is better for you.
Definitions
Original or expected balance for your mortgage.
Annual interest rate for your mortgage. Interest rates are generally lower
for shorter term mortgages.
This is your combined state and federal tax rate. This is used to calculate your potential
income tax savings by deducting your mortgage interest.
Monthly principal and interest payment (PI). Both 30 year and 15 year mortgages are shown.
Total of all monthly payments over the full term of the mortgage. Both 30 year
and 15 year mortgages are shown.
Total of all interest paid over the full term of the mortgage. Both 30 year and
15 year mortgages are shown.
Information and interactive calculators are made available to you as self-help tools for
your independent use and are not intended to provide investment advice. We can not and
do not guarantee their applicability or accuracy in regards to your individual circumstances.
All examples are hypothetical and are for illustrative purposes. We encourage you to
seek personalized advice from qualified professionals regarding all personal finance issues.
Loan Comparison Calculator
Determining which loan provides you with the best value involves more than simply comparing
monthly payments. Use this calculator to sort through the monthly payments, fees and other
costs associated with getting a new loan. By comparing these important variables side by side,
this calculator can help you pick the loan that works best for you. Click on the "View Report"
button to see the results in detail.
Definitions
The total dollar amount for this loan.
The interest rate on this loan.
The number of years over which you will repay this loan. The most common
terms are 15 years and 30 years. If this loan has a "balloon" payment, the loan term will be
shorter than the number of years to amortize the loan. For example, a loan with a 5-year term
amortized over 30 years will have the same monthly payment as a 30-year loan with the same interest
rate. The difference is the 30-year loan will have equal payments for 30 years. The 5-year loan
will have equal payments for 5 years and then a very large, or balloon, payment for the remaining balance.
The number of years used in calculating the monthly payment. Loans that
are amortized over a longer period than their loan term have a balloon payment. See "Loan term"
for more information.
The dollar amount charged as a loan origination fee, which is included in the
Annual Percentage Rate (APR) calculation. For many loans a 1% origination fee is common. For
example: a 1% fee on a $120,000 loan would cost $1,200.
An upfront fee included in the APR calculation.
Fees included in the APR calculation. These fees can vary by lender but,
at a minimum, usually includes prepaid interest.
Any other costs that should be included in the APR calculation.
Monthly principal and interest payment (PI).
A standard calculation used by lenders. It is designed to help borrowers compare
different loan options. For example: a loan with a lower stated interest rate may be a bad value
if its fees are too high. Likewise, a loan with a higher stated rate and very low fees could be
an exceptional value. APR calculations incorporate these fees into a single rate. You can then
compare loans with different fees, rates or different terms.
This is the total final payment for all loans that are amortized over a
period of time longer than the loan term. The balloon payment is total interest and principal
balance due at the end of the loan term. (If the loan term is the same as the amortization,
this amount is always zero.)
Information and interactive calculators are made available to you as self-help
tools for your independent use and are not intended to provide investment advice. We can not and
do not guarantee their applicability or accuracy in regards to your individual circumstances. All
examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized
advice from qualified professionals regarding all personal finance issues.
Investment Returns
Meeting your long-term investment goal is dependent on a number of factors. This not only
includes your investment capital and rate of return, but inflation, taxes and your time
horizon. This calculator helps you sort through these factors and determine your bottom
line. Click the "View Report" button for a detailed look at the results.
Definitions
The number of years you wish to analyze. This can be any number from one to one hundred.
This is the annually compounded rate of return you expect from your
investments before taxes. The actual rate of return is largely dependant on the type of
investments you select. From January 1970 to December 2005, the average compounded rate of
return for the S&P 500, including reinvestment of dividends, was approximately 11.4% per year.
During this period, the highest 12-month return was 61%, and the lowest was -39%. Savings
accounts at a bank pay as little as 1% or less.
It is important to remember that future rates of return can't be predicted
with certainty and that investments that pay higher rates of return are subject to higher risk
and volatility. The actual rate of return on investments can vary widely over time, especially
for long-term investments. This includes the potential loss of principal on your investment.
It is not possible to invest directly in an index and the compounded rate of return noted
above does not reflect additional sales charges and fees that funds may charge.
Interest on an investment's interest, plus previous interest. The more
frequently this occurs, the sooner your accumulated interest will generate additional interest.
You should check with your financial institution to find out how often interest is being
compounded on your particular investment.
Total you currently have invested that should be included in this analysis.
What you expect for the average long-term inflation rate.
A common measure of inflation in the U.S. is the Consumer Price Index (CPI), which has a
long-term average of 3.1% annually, from 1925 through 2005.
The amount you will contribute each year to your investments. If you check
the box to adjust this amount for inflation, your annual investment will increase each
year by the inflation rate.
The percentage of your investment return you will pay in taxes.
Your taxes are assumed to be payable annually, at the end of the year.
Total after-tax return if your investment profit is compounded annually.
Total after-tax return if your investment profit is simple interest with no compounding.
Total you have invested. This includes your initial investment and all periodic investments.
Your investments total ending value. If you have checked the box to show values
after inflation, this amount is the total value of your investment in today's dollars. If this box
is unchecked, it will show the actual value of the investment.
Information and interactive calculators are made available to you as
self-help tools for your independent use and are not intended to provide investment advice.
We can not and do not guarantee their applicability or accuracy in regards to your individual
circumstances. All examples are hypothetical and are for illustrative purposes. We encourage
you to seek personalized advice from qualified professionals regarding all personal finance issues.
Retirement Planner
Do you know what it takes to work towards a secure retirement? Use this calculator to help
you create your retirement plan. View your retirement savings balance and your withdrawals
for each year until the end of your retirement. Social security is calculated on a sliding
scale based on your income. Including a non-working spouse in your plan increases your social
security benefits up to, but not over, the maximum.
Definitions
Your current age.
Age you wish to retire. This calculator assumes that the year you retire,
you do not make any contributions to your retirement savings. So if you retire at age 65,
your last contribution happened when you were actually age 64. This calculator also
assumes that you make your entire contribution at the end of each year.
Your total household income. If you are married, this should include your spouse's income.
Total amount that you currently have saved toward your retirement.
Include all sources of retirement savings such as 401(k)s, IRAs and Annuities.
This is the annual rate of return you expect from your investments after taxes.
The actual rate of return is largely dependant on the type of investments you select.
From January 1970 to December 2005, the average compounded rate of return for the S&P 500,
including reinvestment of dividends, was approximately 11.4% per year. During this period,
the highest 12-month return was 61%, and the lowest was -39%. Savings accounts at a bank
pay as little as 1% or less.
It is important to remember that future rates of return can't be predicted
with certainty and that investments that pay higher rates of return are subject to higher risk
and volatility. The actual rate of return on investments can vary widely over time, especially
for long-term investments. This includes the potential loss of principal on your investment.
It is not possible to invest directly in an index and the compounded rate of return noted above
does not reflect additional sales charges and fees that funds may charge.
This is the annual rate of return you expect from your investments during
retirement, after taxes. It is often lower than the return earned before retirement due to
more conservative investment choices to help insure a steady flow of income. The actual rate
of return is largely dependant on the type of investments you select. From January 1970 to
December 2005, the average compounded rate of return for the S&P 500, including reinvestment
of dividends, was approximately 11.4% per year. During this period, the highest 12-month
return was 61%, and the lowest was -39%. Savings accounts at a bank pay as little as 1% or less.
It is important to remember that future rates of return can't be predicted
with certainty and that investments that pay higher rates of return are subject to higher risk
and volatility. The actual rate of return on investments can vary widely over time, especially
for long-term investments. This includes the potential loss of principal on your investment.
It is not possible to invest directly in an index and the compounded rate of return noted above
does not reflect additional sales charges and fees that funds may charge.
The percentage of your annual income you will save for your retirement goals.
Annual percent increase you expect in your household income.
Total number of years you expect to use your retirement income.
The percent of your working year's household income you think you will need
to have in retirement. This amount is based on your income earned during the last year you will
work. You can change this amount to be as low as 50% and as high as 150%.
What you expect for the average long-term inflation rate.
A common measure of inflation in the U.S. is the Consumer Price Index (CPI), which has
a long-term average of 3.1% annually, from 1925 through 2005.
Check this box if you are married. Married couples have a higher maximum
social security benefit than single wage earners.
Check this box if you wish to include social security benefits in
your retirement planning. Please note that the Social Security benefits could be
different if your spouse worked and earned a benefit higher than one half of your benefit.
Information and interactive calculators are made available to you as
self-help tools for your independent use and are not intended to provide investment advice.
We can not and do not guarantee their applicability or accuracy in regards to your individual
circumstances. All examples are hypothetical and are for illustrative purposes.
We encourage you to seek personalized advice from qualified professionals regarding
all personal finance issues.
Compare Savings Rates
Even a small difference in the interest you are paid on your savings can add up over time.
Use this calculator to see how different savings rates can impact your savings strategy!
This calculator can also show you how deposits at the start of each month, compared to the
end of the month, can impact your savings balance.
Definitions
The starting balance or current amount you have invested or saved.
If you haven't started saving yet, set the amount to "$0".
The amount that you plan on adding to your savings or investment regularly.
The total number of years you are planning to save or invest.
The annual rate of return for each savings account. The actual rate of return
is largely dependant on the type of investments you select. From January 1970 to December 2005,
the average compounded rate of return for the S&P 500, including reinvestment of dividends, was
approximately 11.4% per year. During this period, the highest 12-month return was 61%, and the
lowest was -39%. Savings accounts at a bank pay as little as 1% or less.
It is important to remember that future rates of return can't be predicted
with certainty and that investments that pay higher rates of return are subject to higher risk
and volatility. The actual rate of return on investments can vary widely over time, especially
for long-term investments. This includes the potential loss of principal on your investment.
It is not possible to invest directly in an index and the compounded rate of return noted
above does not reflect additional sales charges and fees that funds may charge.
Information and interactive calculators are made available to you as self-help
tools for your independent use and are not intended to provide investment advice. We can not and
do not guarantee their applicability or accuracy in regards to your individual circumstances. All
examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized
advice from qualified professionals regarding all personal finance issues.
