Interest-Only Mortgage Calculator
Calculate your monthly payments during the interest-only period and see the 'payment shock' with our free interest-only mortgage calculator.
Input Details
Results
Interest-Only Payment
Years 1 - 10
$2,166.67
Fully Amortized Payment
Years 11 - 30
$2,982.29
Payment Shock Analysis
After 10 years, your payment will increase by:
+$816
(+37.6%)
Why does this happen?
During the first 10 years, you pay $0 towards the principal. When the IO period ends, you must pay off the entire $400,000 balance in just 20 years, causing a significant payment increase.
Using the Interest-Only Mortgage Calculator
Our interest-only mortgage calculator is a critical tool for understanding the unique structure of interest-only loans. While these loans offer lower initial payments, an interest-only mortgage calculator reveals the significant "payment shock" that occurs once the interest-only period ends and you begin paying down the principal.
Calculate Interest Only Mortgage Payments
To calculate interest only mortgage costs, enter your loan amount and interest rate. Our interest only mortgage payment calculator will show you the low monthly payment for the initial period (usually 5, 7, or 10 years) where you only pay the interest charges.
Interest Only Mortgage Calculator with Amortization
The most important feature of our interest only mortgage calculator is the amortization phase. Once the IO period ends, your monthly payment will jump significantly because you must pay off the entire principal over the remaining years of the loan. Our tool helps you visualize this jump so you can plan your finances accordingly.