Interest Only Calculator
Calculate the monthly payment for an interest-only loan. Enter the loan amount, interest rate, and term to see your monthly interest-only payment and total interest paid.
Published by:
isCalculator Editorial Team
Was this calculator helpful?
How to use this tool?
How to Use the Interest-Only Calculator
- Enter Loan Amount – Type the total loan amount in dollars (e.g., 200000).
- Enter Annual Interest Rate – Input the yearly interest rate as a percentage (e.g., 5 for 5%).
- Enter Loan Term – Specify the loan duration in months (e.g., 60 for 5 years).
- Click “Calculate” – Press the button or hit Enter to see results.
What You Get
- Monthly Interest-Only Payment – The amount you pay each month (interest only, no principal).
- Total Interest Paid – The sum of all interest payments over the full term.
Important Notes
- All inputs must be positive numbers. Use decimal points for rates (e.g., 5.5).
- This calculator assumes an interest-only loan – you pay no principal during the term.
- Results are rounded to two decimal places.
Previous Results
| Result | Inputs | Date |
|---|
Frequently Asked Questions
An interest-only loan is a loan where the borrower pays only the interest for a certain period, typically the first few years of the loan term. The principal balance remains unchanged during this period.
The monthly interest-only payment is calculated by multiplying the loan amount by the annual interest rate divided by 12. Total interest is the monthly payment multiplied by the number of months.
After the interest-only period, the loan typically converts to a fully amortizing loan, requiring payments of both principal and interest, which increases the monthly payment.
