Interest-Only Payment Calculator

Find the monthly interest-only payment.

How to use

  1. Enter your values in the fields above.
  2. Press Calculate to see your result instantly.
  3. Use the Share button to copy a link to your result.

About this calculator

An interest-only payment covers just the interest accrued on a loan for that period — principal × annual rate ÷ 1200 for a monthly figure — with none of the balance paid down, so the loan amount stays exactly the same until the interest-only period ends or a lump-sum payment is made.

Commercial real estate and construction lenders commonly write interest-only terms during a project's build-out phase, when the borrower has no rental income yet to cover full amortization; bridge loans, some HELOCs, and a minority of residential mortgages use the same structure. Real estate investors and mortgage brokers use this calculator to compare the lower interest-only payment against what a fully amortizing payment would cost.

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