Interest Only Mortgage Calculator

Use our Interest Only Mortgage Calculator to see your payment during the interest-only years, the higher payment that follows, and what the structure costs compared with a standard mortgage.

With an interest-only mortgage you pay just the interest for the first years — often 5, 7 or 10 — so the payment is lower but the balance doesn’t go down. When that period ends, the whole loan has to be repaid over the years that are left, so the payment jumps, usually well above a standard loan’s.

Enter the loan amount, the rate, the interest-only period and the full term. The calculator shows both payments, the payment increase, the interest before and after, and the extra interest compared with a standard loan of the same amount, rate and term, with a year-by-year or month-by-month schedule.

The figures assume a fixed rate and no extra principal payments during the interest-only years; many interest-only loans are adjustable-rate, so check your loan terms.