Interest-Only Mortgage Calculator
An interest-only loan keeps payments low because you pay only interest - but the full principal is still owed at the end. See the payment, total interest and balloon.
- Free
- No sign-up
Enter your loan amount, rate and term to see the interest-only payment.
Worked example
With these example inputs:
- Loan amount$360,000
- Interest rate6.5%
- Term (years)30
Interest-only payment: $1,950
- Total interest$702,000
- Balloon due at end$360,000
- Total of payments$1,062,000
Frequently asked questions
How is an interest-only payment calculated?
Multiply the loan balance by the monthly rate. A $360,000 loan at 6.5% costs $1,950 a month in interest, while the $360,000 principal stays untouched.
What is the catch with interest-only loans?
Payments are lower at first, but you build no equity and still owe the entire principal as a balloon at the end - or face a much higher payment once it converts to amortizing.