Interest-Only Mortgage Calculator

See the low interest-only payment — and the jump when principal kicks in.

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Interest-only loans have a low initial payment because you're not paying down principal yet. This calculator shows the interest-only amount and what the payment becomes once principal repayment begins. Interest-only loans carry real risk — you build no equity during the interest-only period.

How this calculator works

Enter your numbers and the monthly payment recalculates instantly — no submit button, no page reload. The payment breakdown separates principal, interest, taxes, insurance, PMI and HOA. Use the tabs to view a full amortization schedule, compare scenarios side by side, or work backward from a monthly budget. Your inputs are encoded in the page link so you can bookmark or share a scenario without any account.

Frequently asked questions

How does an interest-only mortgage work?

For an initial period you pay only interest, so payments are lower but the balance doesn't shrink. After that period, payments rise to repay principal over the remaining term.

What's the catch with interest-only loans?

You build no equity during the interest-only period, and the payment can jump sharply afterward. They suit specific situations, not most buyers.

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