Interest-Only Mortgage Calculator
Interest-only loans keep payments low for a set period, then switch to principal and interest over the years that remain. See both payments, the size of the jump and what the lower payments cost in interest.
Interest-only payment
$3,625
For the first 10 years, then $4,742 a month for the remaining 20 years.
- Interest during interest-only years28%
- Interest after34%
- Principal38%
- Interest-only payment
- $3,625
- Payment after interest-only ends
- $4,742
- Payment jump
- +$1,117 (31%)
- Interest paid during interest-only years
- $435,000
- Total interest over the loan
- $973,141
- Standard 30-year payment, for comparison
- $4,093
- Extra interest vs. amortizing from day one
- $99,641
The payment rises $1,117 a month when principal begins in year 11. Plan for that jump, or for a sale or refinance before it.
| Year | Payment type | Principal | Interest | Balance |
|---|---|---|---|---|
| 1 | Interest-only | $0 | $43,500 | $600,000 |
| 2 | Interest-only | $0 | $43,500 | $600,000 |
| 3 | Interest-only | $0 | $43,500 | $600,000 |
| 4 | Interest-only | $0 | $43,500 | $600,000 |
| 5 | Interest-only | $0 | $43,500 | $600,000 |
| 6 | Interest-only | $0 | $43,500 | $600,000 |
| 7 | Interest-only | $0 | $43,500 | $600,000 |
| 8 | Interest-only | $0 | $43,500 | $600,000 |
| 9 | Interest-only | $0 | $43,500 | $600,000 |
| 10 | Interest-only | $0 | $43,500 | $600,000 |
Estimates for illustration only, not a loan offer or a commitment to lend. Rates, taxes, insurance and program rules vary; our team will confirm exact figures for your situation.
How this calculator works.
During the interest-only period the payment is the loan balance times the rate divided by 12. No principal is repaid, so the balance stays where it started.
When that period ends, the full balance is amortized over the remaining term. A 30-year loan with 10 years interest-only repays the whole balance over 20 years, which makes the later payment higher than a standard 30-year payment.
Total interest is compared with a loan that amortizes over the full term from day one, so you can see what the lower early payments cost. Interest-only options are common on DSCR and investment property loans, where cash flow in the early years matters.
Interest-only payment = loan × (rate ÷ 12). Payment after = standard payment on the loan over (term − interest-only years).
Common questions.
Turn the estimateinto real numbers.
Answer a few questions and our team will price your scenario with current rates and the right program.
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