Free online Calculators

Interest-Only Loan Calculator

Calculate monthly payments for loans with an interest-only period followed by full amortization. Compare interest-only vs fully amortized payments.

Free to use
12,500+ users
Updated January 2025
Instant results

Interest-Only Calculator

IO Payment
$3k
After IO
$4k
Payment Shock
37.6%

Moderate Risk

Payment increases by 37.6% after 10 years

IO Payment
$3k
for 10 years
After IO Period
$4k
for 20 years
Monthly Savings
$452
vs traditional
Payment Shock
$1k
37.6% jump
IO Payment
$2,708
Years 1-10
After IO
$3,728
Years 11-30
Traditional
$3,160
30 years

Payment Shock Analysis

Initial Payment:$2,708
Payment After 10 Years:$3,728
Payment Increase:$1,020
Percent Increase:37.6%

Total Cost Comparison

Interest-Only Loan:$1,219,688
Traditional 30-Year:$1,137,722
Difference:$81,965

Interest-Only Loan Tips

  • Plan for payment shock: Budget for the higher payment when IO period ends
  • Best for short-term: Ideal if you plan to sell, refinance, or have increasing income
  • No equity build: You don't build equity during IO period unless property appreciates
  • Investment strategy: Makes sense if you can earn more investing the savings than loan interest

Understanding Interest-Only Calculator

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Key Terms You Should Know

Key Term 1

[Definition and explanation]

How It Works

[Step-by-step process explanation with examples]

8 Best Practices

8 Common Mistakes to Avoid

Related Topics & Keywords

Frequently Asked Questions

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