Real Estate

Interest-Only Loan Calculator

An interest-only (IO) mortgage keeps your payment lower in the early years because you're not reducing principal. This calculator compares your IO payment to a fully amortizing payment and shows the total interest cost difference over the loan term.

Loan Amount ($)

Interest Rate (%)

Interest-Only Period (years)

Total Loan Term (years)

Interest-Only Payment

$—

during IO period

After IO period—

Total interest paid—

Balance at IO end—

Fully Amortizing Payment

$—

same for full term

After — years—

Total interest paid—

Balance at year ——