The Interest-Only Loan Calculator helps you analyze loans on which you pay interest only for a specified initial period. After the initial interest-only period, you begin to pay principal, as well as interest, you your monthly payment increases significantly.

• Enter ballpark values by clicking on and dragging the diamond-shaped sliders left or right. Enter exact numbers by clicking on the number in the box on the right and type your number (no commas).
• The results of your calculations show in the box at the bottom of the calculator.
• Click on tabs for details and for more options.

The Loan Calculator Tab allows you to enter basic information used to calculate your loan.

Loan Amount

Enter the amount of the loan you want.

Loan Period

Enter the number of years you will be borrowing money. That is, enter the total number of years of your mortgage. .

Interest-Only Period

Enter the value for the intial period of the loan during which you will be paying interest only.

Annual Rate

Enter the value of the interest rate you will be paying on your fixed rate loan.

Total Interest Paid

This amount reflects all the interest you have to pay over the life of the loan.

Results

The content of the results box changes depending upon the amounts you have entered.

The Payment Schedule Tab shows the amortization schedule for the chosen loan. Each row shows a payment number, the interest, the principal and the balance of the loan at that payment number.

The Payment Chart Tab shows an area graph with payment values and the distribution of interest, principal and extra principal (if any). Move your cursor over the chart to get a readout of interest, principal and extra principal for any one loan period.

The pie chart shows you the cumulative distribution of interest, principal and extra payments (if any) at the end of your loan.

Extra Principal

Extra Principal is an amount you plan to include with every monthly payment to be used explicitly for paying down the principal, not the interest. The faster you pay down your principal, the shorter your loan will be and the less total interest you have to pay.