Interest Only Mortgage Calculator
Result
Interest Only Mortgage Calculator — free online calculator.
Formula
- Interest-only mortgage payment calculator. This page documents the calculator's stated model and gives an educational worked example.
- The main inputs are Loan amount, Annual interest rate. Enter them in the units and format shown in the calculator.
- Use monetary amounts, rates and time periods exactly as labeled; the result reflects the assumptions entered on this page.
- Changing any input above recalculates the result with the same calculation engine used by this page.
Example: Interest Only Mortgage
- Loan amount: 300000
- Annual interest rate: 6 %
A 200,000 balance at 6% annual interest gives an interest-only payment of 1,000 per month.
Sample result: Calculating…
Frequently asked questions
What does the Interest Only Mortgage calculate?
This payment does not reduce principal during the interest-only period and excludes taxes, insurance, fees, and later amortizing payments.
Which values should I enter?
Enter Loan amount, Annual interest rate using the units and format shown beside each field.
What formula does this calculator use?
The calculator uses the following relationship: Monthly interest-only payment = Principal × Annual rate ÷ 12.
Why might my result differ from another source?
Results can differ when another source uses different units, rounding rules, conventions or assumptions. Compare the inputs and definitions before comparing results.
Does the result update automatically?
Yes. Changing an input updates the result using the same calculation engine shown on this page.