Interest-Only Loan Calculator
Shows the low payment now, the higher payment later, and the extra interest.
Interest-only payment
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Share sends a link that reopens these numbers. Copy details pastes the full breakdown as a list.
Payment afterwards —
Repayment loan payment, for comparison —
Extra interest against a repayment loan —
Reading this —
The formula
interest-only payment = balance × rate ÷ 12
None of the payment reduces the balance, so the full amount is still owed when repayments begin.
What to watch out for
It makes sense mainly when you have a firm plan to repay the principal.
Frequently Asked Questions
How is an interest-only payment calculated?
Balance × annual rate ÷ 12. 200,000 at 6% is 1,000.00 a month.