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Mortgage

Interest-Only Mortgage Calculator

During the interest-only period you pay only the interest, so payments are low — but the balance doesn't fall. When it ends, payments jump to amortize the loan.

Your details

Interest-only payment
$2,166.67
Payment after IO period
$2,982.29
Total interest
$575,750.21

Interest-only vs full payment

$5.1KTotal
Interest-only payment
$2,166.6742%
Payment after interest-only period
$2,982.2958%
Interest-only payment$2,166.67

Formula

Interest-only payment = balance × monthly rate. After the IO period, the balance amortizes over the remaining years.

Frequently asked questions

What's the catch with interest-only?

You build no equity during the interest-only period, and the payment rises — often sharply — once amortization begins. Plan for that jump.

Sources & methodology

Last updated: 2026-07-20

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