Interest Only Calculator
Calculate interest-only mortgage payments and understand how these loans work
Interest Only Calculator
Calculate your interest-only mortgage payments
The full interest-only calculator is available on our main calculator page
Go to Main CalculatorHow Interest-Only Mortgages Work
Understanding the structure and payment schedule
Interest-Only Period5-10 years
Pay only interest for the first 5-10 years of the loan
Lower Initial Payments~40% lower
Monthly payments are significantly lower than traditional mortgages
Payment IncreasesHigher after IO period
After interest-only period, payments increase to include principal
Payment Comparison
$400,000 at 4%
Traditional: $1,909/month
Interest-Only: $1,333/month
$500,000 at 5%
Traditional: $2,684/month
Interest-Only: $2,083/month
$600,000 at 3.5%
Traditional: $2,692/month
Interest-Only: $1,750/month
Important Considerations
- No equity built during IO period
- Payment shock when IO period ends
- Requires financial planning
- Best for high-income growth situations
Retirement Interest-Only Mortgages
Specialized IO mortgages for retirees
Long-Term IO
Interest-only payments for the life of the loan, designed for retirement income planning
Repayment Options
Loan balance repaid from estate, downsizing, or equity release products
Calculate Your Interest-Only Payments
Use our mortgage calculator to determine your interest-only payment amounts and plan your financial strategy.
Start Calculating