How to Calculate Interest Only
What is Interest Only?
An interest-only mortgage calculator shows monthly payments during the interest-only period and the significantly higher payments once amortization begins. During the interest-only phase, no principal is reduced. When the loan converts to fully-amortizing, payments jump 30–50% to pay off the same balance in the remaining term.
Step-by-Step Guide
- 1Provide necessary inputs
- 2Review calculations
Worked Examples
Input
Enter the required values
Result
Result computed by the formula
Common Mistakes to Avoid
- ✕Measurement errors
- ✕Wrong assumptions
Frequently Asked Questions
What does this calculator do?
Provide necessary inputs
How do I use this calculator?
Review calculations
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