Interest-Only Mortgage Calculator

See your interest-only mortgage payment, the jump when principal payments begin, and the extra interest compared with a standard loan.

Payment from year 11: $3,041.46amortizes $400,000.00 over 20 years
Payment increase at reset: $791.4635.2% higher than the interest-only payment
Balance when payments jump: $400,000.00
Total interest: $599,949.45
Standard loan payment: $2,594.39fully amortizing over 30 years
Extra interest vs. standard: $65,968.19
Reset date: Nov 10, 2036first amortizing payment
Payoff date: Oct 10, 2056

Interest-only payment$2,250.00for the first 10 years

Show the work

Monthly rate r = 6.75% ÷ 12 = 0.005625
Interest-only payment = P × r = $400,000.00 × 0.005625 = $2,250.00
After 120 months the balance is $400,000.00, repaid over the remaining 240 months
Amortizing payment = $400,000.00 · r(1+r)²⁴⁰ ÷ ((1+r)²⁴⁰ − 1) = $3,041.46

Loan balance: interest-only vs. standard amortizing

Interest-only loan
Standard loan

Interest-only vs. standard loan
	Interest-only	Standard
Payment, years 1–10	$2,250.00	$2,594.39
Payment, years 11–30	$3,041.46	$2,594.39
Principal repaid by year 10	$0.00	$58,796.00
Total interest	$599,949.45	$533,981.26
Total of payments	$999,949.45	$933,981.26

Amortization schedule by year
Year	Ends	Payments	Principal	Interest	Balance
1	Oct 10, 2027	$27,000.00	$0.00	$27,000.00	$400,000.00
2	Oct 10, 2028	$27,000.00	$0.00	$27,000.00	$400,000.00
3	Oct 10, 2029	$27,000.00	$0.00	$27,000.00	$400,000.00
4	Oct 10, 2030	$27,000.00	$0.00	$27,000.00	$400,000.00
5	Oct 10, 2031	$27,000.00	$0.00	$27,000.00	$400,000.00
6	Oct 10, 2032	$27,000.00	$0.00	$27,000.00	$400,000.00
7	Oct 10, 2033	$27,000.00	$0.00	$27,000.00	$400,000.00
8	Oct 10, 2034	$27,000.00	$0.00	$27,000.00	$400,000.00
9	Oct 10, 2035	$27,000.00	$0.00	$27,000.00	$400,000.00
10	Oct 10, 2036	$27,000.00	$0.00	$27,000.00	$400,000.00
11	Oct 10, 2037	$36,497.47	$9,796.88	$26,700.59	$390,203.12
12	Oct 10, 2038	$36,497.47	$10,479.02	$26,018.46	$379,724.10
13	Oct 10, 2039	$36,497.47	$11,208.65	$25,288.82	$368,515.45
14	Oct 10, 2040	$36,497.47	$11,989.08	$24,508.39	$356,526.37
15	Oct 10, 2041	$36,497.47	$12,823.86	$23,673.61	$343,702.51
16	Oct 10, 2042	$36,497.47	$13,716.76	$22,780.71	$329,985.75
17	Oct 10, 2043	$36,497.47	$14,671.83	$21,825.64	$315,313.92
18	Oct 10, 2044	$36,497.47	$15,693.40	$20,804.08	$299,620.53
19	Oct 10, 2045	$36,497.47	$16,786.10	$19,711.38	$282,834.43
20	Oct 10, 2046	$36,497.47	$17,954.88	$18,542.60	$264,879.56
21	Oct 10, 2047	$36,497.47	$19,205.04	$17,292.43	$245,674.52
22	Oct 10, 2048	$36,497.47	$20,542.25	$15,955.23	$225,132.27
23	Oct 10, 2049	$36,497.47	$21,972.56	$14,524.91	$203,159.71
24	Oct 10, 2050	$36,497.47	$23,502.46	$12,995.01	$179,657.25
25	Oct 10, 2051	$36,497.47	$25,138.89	$11,358.58	$154,518.36
26	Oct 10, 2052	$36,497.47	$26,889.26	$9,608.21	$127,629.10
27	Oct 10, 2053	$36,497.47	$28,761.50	$7,735.97	$98,867.59
28	Oct 10, 2054	$36,497.47	$30,764.11	$5,733.36	$68,103.49
29	Oct 10, 2055	$36,497.47	$32,906.15	$3,591.32	$35,197.34
30	Oct 10, 2056	$36,497.47	$35,197.34	$1,300.14	$0.00
Total		$999,949.45	$400,000.00	$599,949.45

Monthly amortization schedule
#	Date	Payment	Principal	Interest	Balance
1	Nov 10, 2026	$2,250.00	$0.00	$2,250.00	$400,000.00
2	Dec 10, 2026	$2,250.00	$0.00	$2,250.00	$400,000.00
3	Jan 10, 2027	$2,250.00	$0.00	$2,250.00	$400,000.00
4	Feb 10, 2027	$2,250.00	$0.00	$2,250.00	$400,000.00
5	Mar 10, 2027	$2,250.00	$0.00	$2,250.00	$400,000.00
6	Apr 10, 2027	$2,250.00	$0.00	$2,250.00	$400,000.00
7	May 10, 2027	$2,250.00	$0.00	$2,250.00	$400,000.00
8	Jun 10, 2027	$2,250.00	$0.00	$2,250.00	$400,000.00
9	Jul 10, 2027	$2,250.00	$0.00	$2,250.00	$400,000.00
10	Aug 10, 2027	$2,250.00	$0.00	$2,250.00	$400,000.00
11	Sep 10, 2027	$2,250.00	$0.00	$2,250.00	$400,000.00
12	Oct 10, 2027	$2,250.00	$0.00	$2,250.00	$400,000.00
13	Nov 10, 2027	$2,250.00	$0.00	$2,250.00	$400,000.00
14	Dec 10, 2027	$2,250.00	$0.00	$2,250.00	$400,000.00
15	Jan 10, 2028	$2,250.00	$0.00	$2,250.00	$400,000.00
16	Feb 10, 2028	$2,250.00	$0.00	$2,250.00	$400,000.00
17	Mar 10, 2028	$2,250.00	$0.00	$2,250.00	$400,000.00
18	Apr 10, 2028	$2,250.00	$0.00	$2,250.00	$400,000.00
19	May 10, 2028	$2,250.00	$0.00	$2,250.00	$400,000.00
20	Jun 10, 2028	$2,250.00	$0.00	$2,250.00	$400,000.00
21	Jul 10, 2028	$2,250.00	$0.00	$2,250.00	$400,000.00
22	Aug 10, 2028	$2,250.00	$0.00	$2,250.00	$400,000.00
23	Sep 10, 2028	$2,250.00	$0.00	$2,250.00	$400,000.00
24	Oct 10, 2028	$2,250.00	$0.00	$2,250.00	$400,000.00
25	Nov 10, 2028	$2,250.00	$0.00	$2,250.00	$400,000.00
26	Dec 10, 2028	$2,250.00	$0.00	$2,250.00	$400,000.00
27	Jan 10, 2029	$2,250.00	$0.00	$2,250.00	$400,000.00
28	Feb 10, 2029	$2,250.00	$0.00	$2,250.00	$400,000.00
29	Mar 10, 2029	$2,250.00	$0.00	$2,250.00	$400,000.00
30	Apr 10, 2029	$2,250.00	$0.00	$2,250.00	$400,000.00
31	May 10, 2029	$2,250.00	$0.00	$2,250.00	$400,000.00
32	Jun 10, 2029	$2,250.00	$0.00	$2,250.00	$400,000.00
33	Jul 10, 2029	$2,250.00	$0.00	$2,250.00	$400,000.00
34	Aug 10, 2029	$2,250.00	$0.00	$2,250.00	$400,000.00
35	Sep 10, 2029	$2,250.00	$0.00	$2,250.00	$400,000.00
36	Oct 10, 2029	$2,250.00	$0.00	$2,250.00	$400,000.00
37	Nov 10, 2029	$2,250.00	$0.00	$2,250.00	$400,000.00
38	Dec 10, 2029	$2,250.00	$0.00	$2,250.00	$400,000.00
39	Jan 10, 2030	$2,250.00	$0.00	$2,250.00	$400,000.00
40	Feb 10, 2030	$2,250.00	$0.00	$2,250.00	$400,000.00
41	Mar 10, 2030	$2,250.00	$0.00	$2,250.00	$400,000.00
42	Apr 10, 2030	$2,250.00	$0.00	$2,250.00	$400,000.00
43	May 10, 2030	$2,250.00	$0.00	$2,250.00	$400,000.00
44	Jun 10, 2030	$2,250.00	$0.00	$2,250.00	$400,000.00
45	Jul 10, 2030	$2,250.00	$0.00	$2,250.00	$400,000.00
46	Aug 10, 2030	$2,250.00	$0.00	$2,250.00	$400,000.00
47	Sep 10, 2030	$2,250.00	$0.00	$2,250.00	$400,000.00
48	Oct 10, 2030	$2,250.00	$0.00	$2,250.00	$400,000.00
49	Nov 10, 2030	$2,250.00	$0.00	$2,250.00	$400,000.00
50	Dec 10, 2030	$2,250.00	$0.00	$2,250.00	$400,000.00
51	Jan 10, 2031	$2,250.00	$0.00	$2,250.00	$400,000.00
52	Feb 10, 2031	$2,250.00	$0.00	$2,250.00	$400,000.00
53	Mar 10, 2031	$2,250.00	$0.00	$2,250.00	$400,000.00
54	Apr 10, 2031	$2,250.00	$0.00	$2,250.00	$400,000.00
55	May 10, 2031	$2,250.00	$0.00	$2,250.00	$400,000.00
56	Jun 10, 2031	$2,250.00	$0.00	$2,250.00	$400,000.00
57	Jul 10, 2031	$2,250.00	$0.00	$2,250.00	$400,000.00
58	Aug 10, 2031	$2,250.00	$0.00	$2,250.00	$400,000.00
59	Sep 10, 2031	$2,250.00	$0.00	$2,250.00	$400,000.00
60	Oct 10, 2031	$2,250.00	$0.00	$2,250.00	$400,000.00
61	Nov 10, 2031	$2,250.00	$0.00	$2,250.00	$400,000.00
62	Dec 10, 2031	$2,250.00	$0.00	$2,250.00	$400,000.00
63	Jan 10, 2032	$2,250.00	$0.00	$2,250.00	$400,000.00
64	Feb 10, 2032	$2,250.00	$0.00	$2,250.00	$400,000.00
65	Mar 10, 2032	$2,250.00	$0.00	$2,250.00	$400,000.00
66	Apr 10, 2032	$2,250.00	$0.00	$2,250.00	$400,000.00
67	May 10, 2032	$2,250.00	$0.00	$2,250.00	$400,000.00
68	Jun 10, 2032	$2,250.00	$0.00	$2,250.00	$400,000.00
69	Jul 10, 2032	$2,250.00	$0.00	$2,250.00	$400,000.00
70	Aug 10, 2032	$2,250.00	$0.00	$2,250.00	$400,000.00
71	Sep 10, 2032	$2,250.00	$0.00	$2,250.00	$400,000.00
72	Oct 10, 2032	$2,250.00	$0.00	$2,250.00	$400,000.00
73	Nov 10, 2032	$2,250.00	$0.00	$2,250.00	$400,000.00
74	Dec 10, 2032	$2,250.00	$0.00	$2,250.00	$400,000.00
75	Jan 10, 2033	$2,250.00	$0.00	$2,250.00	$400,000.00
76	Feb 10, 2033	$2,250.00	$0.00	$2,250.00	$400,000.00
77	Mar 10, 2033	$2,250.00	$0.00	$2,250.00	$400,000.00
78	Apr 10, 2033	$2,250.00	$0.00	$2,250.00	$400,000.00
79	May 10, 2033	$2,250.00	$0.00	$2,250.00	$400,000.00
80	Jun 10, 2033	$2,250.00	$0.00	$2,250.00	$400,000.00
81	Jul 10, 2033	$2,250.00	$0.00	$2,250.00	$400,000.00
82	Aug 10, 2033	$2,250.00	$0.00	$2,250.00	$400,000.00
83	Sep 10, 2033	$2,250.00	$0.00	$2,250.00	$400,000.00
84	Oct 10, 2033	$2,250.00	$0.00	$2,250.00	$400,000.00
85	Nov 10, 2033	$2,250.00	$0.00	$2,250.00	$400,000.00
86	Dec 10, 2033	$2,250.00	$0.00	$2,250.00	$400,000.00
87	Jan 10, 2034	$2,250.00	$0.00	$2,250.00	$400,000.00
88	Feb 10, 2034	$2,250.00	$0.00	$2,250.00	$400,000.00
89	Mar 10, 2034	$2,250.00	$0.00	$2,250.00	$400,000.00
90	Apr 10, 2034	$2,250.00	$0.00	$2,250.00	$400,000.00
91	May 10, 2034	$2,250.00	$0.00	$2,250.00	$400,000.00
92	Jun 10, 2034	$2,250.00	$0.00	$2,250.00	$400,000.00
93	Jul 10, 2034	$2,250.00	$0.00	$2,250.00	$400,000.00
94	Aug 10, 2034	$2,250.00	$0.00	$2,250.00	$400,000.00
95	Sep 10, 2034	$2,250.00	$0.00	$2,250.00	$400,000.00
96	Oct 10, 2034	$2,250.00	$0.00	$2,250.00	$400,000.00
97	Nov 10, 2034	$2,250.00	$0.00	$2,250.00	$400,000.00
98	Dec 10, 2034	$2,250.00	$0.00	$2,250.00	$400,000.00
99	Jan 10, 2035	$2,250.00	$0.00	$2,250.00	$400,000.00
100	Feb 10, 2035	$2,250.00	$0.00	$2,250.00	$400,000.00
101	Mar 10, 2035	$2,250.00	$0.00	$2,250.00	$400,000.00
102	Apr 10, 2035	$2,250.00	$0.00	$2,250.00	$400,000.00
103	May 10, 2035	$2,250.00	$0.00	$2,250.00	$400,000.00
104	Jun 10, 2035	$2,250.00	$0.00	$2,250.00	$400,000.00
105	Jul 10, 2035	$2,250.00	$0.00	$2,250.00	$400,000.00
106	Aug 10, 2035	$2,250.00	$0.00	$2,250.00	$400,000.00
107	Sep 10, 2035	$2,250.00	$0.00	$2,250.00	$400,000.00
108	Oct 10, 2035	$2,250.00	$0.00	$2,250.00	$400,000.00
109	Nov 10, 2035	$2,250.00	$0.00	$2,250.00	$400,000.00
110	Dec 10, 2035	$2,250.00	$0.00	$2,250.00	$400,000.00
111	Jan 10, 2036	$2,250.00	$0.00	$2,250.00	$400,000.00
112	Feb 10, 2036	$2,250.00	$0.00	$2,250.00	$400,000.00
113	Mar 10, 2036	$2,250.00	$0.00	$2,250.00	$400,000.00
114	Apr 10, 2036	$2,250.00	$0.00	$2,250.00	$400,000.00
115	May 10, 2036	$2,250.00	$0.00	$2,250.00	$400,000.00
116	Jun 10, 2036	$2,250.00	$0.00	$2,250.00	$400,000.00
117	Jul 10, 2036	$2,250.00	$0.00	$2,250.00	$400,000.00
118	Aug 10, 2036	$2,250.00	$0.00	$2,250.00	$400,000.00
119	Sep 10, 2036	$2,250.00	$0.00	$2,250.00	$400,000.00
120	Oct 10, 2036	$2,250.00	$0.00	$2,250.00	$400,000.00
121	Nov 10, 2036	$3,041.46	$791.46	$2,250.00	$399,208.54
122	Dec 10, 2036	$3,041.46	$795.91	$2,245.55	$398,412.64
123	Jan 10, 2037	$3,041.46	$800.38	$2,241.07	$397,612.25
124	Feb 10, 2037	$3,041.46	$804.89	$2,236.57	$396,807.36
125	Mar 10, 2037	$3,041.46	$809.41	$2,232.04	$395,997.95
126	Apr 10, 2037	$3,041.46	$813.97	$2,227.49	$395,183.98
127	May 10, 2037	$3,041.46	$818.55	$2,222.91	$394,365.44
128	Jun 10, 2037	$3,041.46	$823.15	$2,218.31	$393,542.29
129	Jul 10, 2037	$3,041.46	$827.78	$2,213.68	$392,714.50
130	Aug 10, 2037	$3,041.46	$832.44	$2,209.02	$391,882.07
131	Sep 10, 2037	$3,041.46	$837.12	$2,204.34	$391,044.95
132	Oct 10, 2037	$3,041.46	$841.83	$2,199.63	$390,203.12
133	Nov 10, 2037	$3,041.46	$846.56	$2,194.89	$389,356.56
134	Dec 10, 2037	$3,041.46	$851.33	$2,190.13	$388,505.23
135	Jan 10, 2038	$3,041.46	$856.11	$2,185.34	$387,649.12
136	Feb 10, 2038	$3,041.46	$860.93	$2,180.53	$386,788.19
137	Mar 10, 2038	$3,041.46	$865.77	$2,175.68	$385,922.41
138	Apr 10, 2038	$3,041.46	$870.64	$2,170.81	$385,051.77
139	May 10, 2038	$3,041.46	$875.54	$2,165.92	$384,176.23
140	Jun 10, 2038	$3,041.46	$880.46	$2,160.99	$383,295.77
141	Jul 10, 2038	$3,041.46	$885.42	$2,156.04	$382,410.35
142	Aug 10, 2038	$3,041.46	$890.40	$2,151.06	$381,519.95
143	Sep 10, 2038	$3,041.46	$895.41	$2,146.05	$380,624.55
144	Oct 10, 2038	$3,041.46	$900.44	$2,141.01	$379,724.10
145	Nov 10, 2038	$3,041.46	$905.51	$2,135.95	$378,818.60
146	Dec 10, 2038	$3,041.46	$910.60	$2,130.85	$377,907.99
147	Jan 10, 2039	$3,041.46	$915.72	$2,125.73	$376,992.27
148	Feb 10, 2039	$3,041.46	$920.87	$2,120.58	$376,071.40
149	Mar 10, 2039	$3,041.46	$926.05	$2,115.40	$375,145.34
150	Apr 10, 2039	$3,041.46	$931.26	$2,110.19	$374,214.08
151	May 10, 2039	$3,041.46	$936.50	$2,104.95	$373,277.58
152	Jun 10, 2039	$3,041.46	$941.77	$2,099.69	$372,335.81
153	Jul 10, 2039	$3,041.46	$947.07	$2,094.39	$371,388.74
154	Aug 10, 2039	$3,041.46	$952.39	$2,089.06	$370,436.34
155	Sep 10, 2039	$3,041.46	$957.75	$2,083.70	$369,478.59
156	Oct 10, 2039	$3,041.46	$963.14	$2,078.32	$368,515.45
157	Nov 10, 2039	$3,041.46	$968.56	$2,072.90	$367,546.90
158	Dec 10, 2039	$3,041.46	$974.00	$2,067.45	$366,572.89
159	Jan 10, 2040	$3,041.46	$979.48	$2,061.97	$365,593.41
160	Feb 10, 2040	$3,041.46	$984.99	$2,056.46	$364,608.42
161	Mar 10, 2040	$3,041.46	$990.53	$2,050.92	$363,617.88
162	Apr 10, 2040	$3,041.46	$996.11	$2,045.35	$362,621.78
163	May 10, 2040	$3,041.46	$1,001.71	$2,039.75	$361,620.07
164	Jun 10, 2040	$3,041.46	$1,007.34	$2,034.11	$360,612.73
165	Jul 10, 2040	$3,041.46	$1,013.01	$2,028.45	$359,599.72
166	Aug 10, 2040	$3,041.46	$1,018.71	$2,022.75	$358,581.01
167	Sep 10, 2040	$3,041.46	$1,024.44	$2,017.02	$357,556.57
168	Oct 10, 2040	$3,041.46	$1,030.20	$2,011.26	$356,526.37
169	Nov 10, 2040	$3,041.46	$1,036.00	$2,005.46	$355,490.37
170	Dec 10, 2040	$3,041.46	$1,041.82	$1,999.63	$354,448.55
171	Jan 10, 2041	$3,041.46	$1,047.68	$1,993.77	$353,400.87
172	Feb 10, 2041	$3,041.46	$1,053.58	$1,987.88	$352,347.29
173	Mar 10, 2041	$3,041.46	$1,059.50	$1,981.95	$351,287.79
174	Apr 10, 2041	$3,041.46	$1,065.46	$1,975.99	$350,222.33
175	May 10, 2041	$3,041.46	$1,071.46	$1,970.00	$349,150.87
176	Jun 10, 2041	$3,041.46	$1,077.48	$1,963.97	$348,073.39
177	Jul 10, 2041	$3,041.46	$1,083.54	$1,957.91	$346,989.85
178	Aug 10, 2041	$3,041.46	$1,089.64	$1,951.82	$345,900.21
179	Sep 10, 2041	$3,041.46	$1,095.77	$1,945.69	$344,804.44
180	Oct 10, 2041	$3,041.46	$1,101.93	$1,939.52	$343,702.51
181	Nov 10, 2041	$3,041.46	$1,108.13	$1,933.33	$342,594.38
182	Dec 10, 2041	$3,041.46	$1,114.36	$1,927.09	$341,480.02
183	Jan 10, 2042	$3,041.46	$1,120.63	$1,920.83	$340,359.39
184	Feb 10, 2042	$3,041.46	$1,126.93	$1,914.52	$339,232.45
185	Mar 10, 2042	$3,041.46	$1,133.27	$1,908.18	$338,099.18
186	Apr 10, 2042	$3,041.46	$1,139.65	$1,901.81	$336,959.53
187	May 10, 2042	$3,041.46	$1,146.06	$1,895.40	$335,813.47
188	Jun 10, 2042	$3,041.46	$1,152.51	$1,888.95	$334,660.97
189	Jul 10, 2042	$3,041.46	$1,158.99	$1,882.47	$333,501.98
190	Aug 10, 2042	$3,041.46	$1,165.51	$1,875.95	$332,336.47
191	Sep 10, 2042	$3,041.46	$1,172.06	$1,869.39	$331,164.41
192	Oct 10, 2042	$3,041.46	$1,178.66	$1,862.80	$329,985.75
193	Nov 10, 2042	$3,041.46	$1,185.29	$1,856.17	$328,800.47
194	Dec 10, 2042	$3,041.46	$1,191.95	$1,849.50	$327,608.51
195	Jan 10, 2043	$3,041.46	$1,198.66	$1,842.80	$326,409.85
196	Feb 10, 2043	$3,041.46	$1,205.40	$1,836.06	$325,204.45
197	Mar 10, 2043	$3,041.46	$1,212.18	$1,829.28	$323,992.27
198	Apr 10, 2043	$3,041.46	$1,219.00	$1,822.46	$322,773.27
199	May 10, 2043	$3,041.46	$1,225.86	$1,815.60	$321,547.42
200	Jun 10, 2043	$3,041.46	$1,232.75	$1,808.70	$320,314.67
201	Jul 10, 2043	$3,041.46	$1,239.69	$1,801.77	$319,074.98
202	Aug 10, 2043	$3,041.46	$1,246.66	$1,794.80	$317,828.32
203	Sep 10, 2043	$3,041.46	$1,253.67	$1,787.78	$316,574.65
204	Oct 10, 2043	$3,041.46	$1,260.72	$1,780.73	$315,313.92
205	Nov 10, 2043	$3,041.46	$1,267.82	$1,773.64	$314,046.11
206	Dec 10, 2043	$3,041.46	$1,274.95	$1,766.51	$312,771.16
207	Jan 10, 2044	$3,041.46	$1,282.12	$1,759.34	$311,489.04
208	Feb 10, 2044	$3,041.46	$1,289.33	$1,752.13	$310,199.71
209	Mar 10, 2044	$3,041.46	$1,296.58	$1,744.87	$308,903.13
210	Apr 10, 2044	$3,041.46	$1,303.88	$1,737.58	$307,599.26
211	May 10, 2044	$3,041.46	$1,311.21	$1,730.25	$306,288.05
212	Jun 10, 2044	$3,041.46	$1,318.59	$1,722.87	$304,969.46
213	Jul 10, 2044	$3,041.46	$1,326.00	$1,715.45	$303,643.46
214	Aug 10, 2044	$3,041.46	$1,333.46	$1,707.99	$302,310.00
215	Sep 10, 2044	$3,041.46	$1,340.96	$1,700.49	$300,969.03
216	Oct 10, 2044	$3,041.46	$1,348.51	$1,692.95	$299,620.53
217	Nov 10, 2044	$3,041.46	$1,356.09	$1,685.37	$298,264.44
218	Dec 10, 2044	$3,041.46	$1,363.72	$1,677.74	$296,900.72
219	Jan 10, 2045	$3,041.46	$1,371.39	$1,670.07	$295,529.33
220	Feb 10, 2045	$3,041.46	$1,379.10	$1,662.35	$294,150.23
221	Mar 10, 2045	$3,041.46	$1,386.86	$1,654.60	$292,763.36
222	Apr 10, 2045	$3,041.46	$1,394.66	$1,646.79	$291,368.70
223	May 10, 2045	$3,041.46	$1,402.51	$1,638.95	$289,966.20
224	Jun 10, 2045	$3,041.46	$1,410.40	$1,631.06	$288,555.80
225	Jul 10, 2045	$3,041.46	$1,418.33	$1,623.13	$287,137.47
226	Aug 10, 2045	$3,041.46	$1,426.31	$1,615.15	$285,711.16
227	Sep 10, 2045	$3,041.46	$1,434.33	$1,607.13	$284,276.83
228	Oct 10, 2045	$3,041.46	$1,442.40	$1,599.06	$282,834.43
229	Nov 10, 2045	$3,041.46	$1,450.51	$1,590.94	$281,383.92
230	Dec 10, 2045	$3,041.46	$1,458.67	$1,582.78	$279,925.25
231	Jan 10, 2046	$3,041.46	$1,466.88	$1,574.58	$278,458.37
232	Feb 10, 2046	$3,041.46	$1,475.13	$1,566.33	$276,983.24
233	Mar 10, 2046	$3,041.46	$1,483.43	$1,558.03	$275,499.82
234	Apr 10, 2046	$3,041.46	$1,491.77	$1,549.69	$274,008.05
235	May 10, 2046	$3,041.46	$1,500.16	$1,541.30	$272,507.89
236	Jun 10, 2046	$3,041.46	$1,508.60	$1,532.86	$270,999.29
237	Jul 10, 2046	$3,041.46	$1,517.09	$1,524.37	$269,482.20
238	Aug 10, 2046	$3,041.46	$1,525.62	$1,515.84	$267,956.59
239	Sep 10, 2046	$3,041.46	$1,534.20	$1,507.26	$266,422.39
240	Oct 10, 2046	$3,041.46	$1,542.83	$1,498.63	$264,879.56
241	Nov 10, 2046	$3,041.46	$1,551.51	$1,489.95	$263,328.05
242	Dec 10, 2046	$3,041.46	$1,560.24	$1,481.22	$261,767.81
243	Jan 10, 2047	$3,041.46	$1,569.01	$1,472.44	$260,198.80
244	Feb 10, 2047	$3,041.46	$1,577.84	$1,463.62	$258,620.96
245	Mar 10, 2047	$3,041.46	$1,586.71	$1,454.74	$257,034.25
246	Apr 10, 2047	$3,041.46	$1,595.64	$1,445.82	$255,438.61
247	May 10, 2047	$3,041.46	$1,604.61	$1,436.84	$253,834.00
248	Jun 10, 2047	$3,041.46	$1,613.64	$1,427.82	$252,220.36
249	Jul 10, 2047	$3,041.46	$1,622.72	$1,418.74	$250,597.64
250	Aug 10, 2047	$3,041.46	$1,631.84	$1,409.61	$248,965.80
251	Sep 10, 2047	$3,041.46	$1,641.02	$1,400.43	$247,324.77
252	Oct 10, 2047	$3,041.46	$1,650.25	$1,391.20	$245,674.52
253	Nov 10, 2047	$3,041.46	$1,659.54	$1,381.92	$244,014.98
254	Dec 10, 2047	$3,041.46	$1,668.87	$1,372.58	$242,346.11
255	Jan 10, 2048	$3,041.46	$1,678.26	$1,363.20	$240,667.85
256	Feb 10, 2048	$3,041.46	$1,687.70	$1,353.76	$238,980.15
257	Mar 10, 2048	$3,041.46	$1,697.19	$1,344.26	$237,282.96
258	Apr 10, 2048	$3,041.46	$1,706.74	$1,334.72	$235,576.22
259	May 10, 2048	$3,041.46	$1,716.34	$1,325.12	$233,859.88
260	Jun 10, 2048	$3,041.46	$1,725.99	$1,315.46	$232,133.88
261	Jul 10, 2048	$3,041.46	$1,735.70	$1,305.75	$230,398.18
262	Aug 10, 2048	$3,041.46	$1,745.47	$1,295.99	$228,652.71
263	Sep 10, 2048	$3,041.46	$1,755.28	$1,286.17	$226,897.43
264	Oct 10, 2048	$3,041.46	$1,765.16	$1,276.30	$225,132.27
265	Nov 10, 2048	$3,041.46	$1,775.09	$1,266.37	$223,357.19
266	Dec 10, 2048	$3,041.46	$1,785.07	$1,256.38	$221,572.11
267	Jan 10, 2049	$3,041.46	$1,795.11	$1,246.34	$219,777.00
268	Feb 10, 2049	$3,041.46	$1,805.21	$1,236.25	$217,971.79
269	Mar 10, 2049	$3,041.46	$1,815.36	$1,226.09	$216,156.43
270	Apr 10, 2049	$3,041.46	$1,825.58	$1,215.88	$214,330.85
271	May 10, 2049	$3,041.46	$1,835.85	$1,205.61	$212,495.00
272	Jun 10, 2049	$3,041.46	$1,846.17	$1,195.28	$210,648.83
273	Jul 10, 2049	$3,041.46	$1,856.56	$1,184.90	$208,792.28
274	Aug 10, 2049	$3,041.46	$1,867.00	$1,174.46	$206,925.28
275	Sep 10, 2049	$3,041.46	$1,877.50	$1,163.95	$205,047.78
276	Oct 10, 2049	$3,041.46	$1,888.06	$1,153.39	$203,159.71
277	Nov 10, 2049	$3,041.46	$1,898.68	$1,142.77	$201,261.03
278	Dec 10, 2049	$3,041.46	$1,909.36	$1,132.09	$199,351.67
279	Jan 10, 2050	$3,041.46	$1,920.10	$1,121.35	$197,431.56
280	Feb 10, 2050	$3,041.46	$1,930.90	$1,110.55	$195,500.66
281	Mar 10, 2050	$3,041.46	$1,941.76	$1,099.69	$193,558.90
282	Apr 10, 2050	$3,041.46	$1,952.69	$1,088.77	$191,606.21
283	May 10, 2050	$3,041.46	$1,963.67	$1,077.78	$189,642.54
284	Jun 10, 2050	$3,041.46	$1,974.72	$1,066.74	$187,667.82
285	Jul 10, 2050	$3,041.46	$1,985.82	$1,055.63	$185,682.00
286	Aug 10, 2050	$3,041.46	$1,996.99	$1,044.46	$183,685.00
287	Sep 10, 2050	$3,041.46	$2,008.23	$1,033.23	$181,676.77
288	Oct 10, 2050	$3,041.46	$2,019.52	$1,021.93	$179,657.25
289	Nov 10, 2050	$3,041.46	$2,030.88	$1,010.57	$177,626.37
290	Dec 10, 2050	$3,041.46	$2,042.31	$999.15	$175,584.06
291	Jan 10, 2051	$3,041.46	$2,053.80	$987.66	$173,530.26
292	Feb 10, 2051	$3,041.46	$2,065.35	$976.11	$171,464.91
293	Mar 10, 2051	$3,041.46	$2,076.97	$964.49	$169,387.95
294	Apr 10, 2051	$3,041.46	$2,088.65	$952.81	$167,299.30
295	May 10, 2051	$3,041.46	$2,100.40	$941.06	$165,198.90
296	Jun 10, 2051	$3,041.46	$2,112.21	$929.24	$163,086.69
297	Jul 10, 2051	$3,041.46	$2,124.09	$917.36	$160,962.60
298	Aug 10, 2051	$3,041.46	$2,136.04	$905.41	$158,826.56
299	Sep 10, 2051	$3,041.46	$2,148.06	$893.40	$156,678.50
300	Oct 10, 2051	$3,041.46	$2,160.14	$881.32	$154,518.36
301	Nov 10, 2051	$3,041.46	$2,172.29	$869.17	$152,346.07
302	Dec 10, 2051	$3,041.46	$2,184.51	$856.95	$150,161.56
303	Jan 10, 2052	$3,041.46	$2,196.80	$844.66	$147,964.76
304	Feb 10, 2052	$3,041.46	$2,209.15	$832.30	$145,755.61
305	Mar 10, 2052	$3,041.46	$2,221.58	$819.88	$143,534.03
306	Apr 10, 2052	$3,041.46	$2,234.08	$807.38	$141,299.95
307	May 10, 2052	$3,041.46	$2,246.64	$794.81	$139,053.31
308	Jun 10, 2052	$3,041.46	$2,259.28	$782.17	$136,794.02
309	Jul 10, 2052	$3,041.46	$2,271.99	$769.47	$134,522.04
310	Aug 10, 2052	$3,041.46	$2,284.77	$756.69	$132,237.27
311	Sep 10, 2052	$3,041.46	$2,297.62	$743.83	$129,939.64
312	Oct 10, 2052	$3,041.46	$2,310.55	$730.91	$127,629.10
313	Nov 10, 2052	$3,041.46	$2,323.54	$717.91	$125,305.56
314	Dec 10, 2052	$3,041.46	$2,336.61	$704.84	$122,968.94
315	Jan 10, 2053	$3,041.46	$2,349.76	$691.70	$120,619.19
316	Feb 10, 2053	$3,041.46	$2,362.97	$678.48	$118,256.22
317	Mar 10, 2053	$3,041.46	$2,376.26	$665.19	$115,879.95
318	Apr 10, 2053	$3,041.46	$2,389.63	$651.82	$113,490.32
319	May 10, 2053	$3,041.46	$2,403.07	$638.38	$111,087.25
320	Jun 10, 2053	$3,041.46	$2,416.59	$624.87	$108,670.66
321	Jul 10, 2053	$3,041.46	$2,430.18	$611.27	$106,240.47
322	Aug 10, 2053	$3,041.46	$2,443.85	$597.60	$103,796.62
323	Sep 10, 2053	$3,041.46	$2,457.60	$583.86	$101,339.02
324	Oct 10, 2053	$3,041.46	$2,471.42	$570.03	$98,867.59
325	Nov 10, 2053	$3,041.46	$2,485.33	$556.13	$96,382.27
326	Dec 10, 2053	$3,041.46	$2,499.31	$542.15	$93,882.96
327	Jan 10, 2054	$3,041.46	$2,513.36	$528.09	$91,369.60
328	Feb 10, 2054	$3,041.46	$2,527.50	$513.95	$88,842.10
329	Mar 10, 2054	$3,041.46	$2,541.72	$499.74	$86,300.38
330	Apr 10, 2054	$3,041.46	$2,556.02	$485.44	$83,744.36
331	May 10, 2054	$3,041.46	$2,570.39	$471.06	$81,173.97
332	Jun 10, 2054	$3,041.46	$2,584.85	$456.60	$78,589.11
333	Jul 10, 2054	$3,041.46	$2,599.39	$442.06	$75,989.72
334	Aug 10, 2054	$3,041.46	$2,614.01	$427.44	$73,375.71
335	Sep 10, 2054	$3,041.46	$2,628.72	$412.74	$70,746.99
336	Oct 10, 2054	$3,041.46	$2,643.50	$397.95	$68,103.49
337	Nov 10, 2054	$3,041.46	$2,658.37	$383.08	$65,445.11
338	Dec 10, 2054	$3,041.46	$2,673.33	$368.13	$62,771.79
339	Jan 10, 2055	$3,041.46	$2,688.36	$353.09	$60,083.42
340	Feb 10, 2055	$3,041.46	$2,703.49	$337.97	$57,379.93
341	Mar 10, 2055	$3,041.46	$2,718.69	$322.76	$54,661.24
342	Apr 10, 2055	$3,041.46	$2,733.99	$307.47	$51,927.25
343	May 10, 2055	$3,041.46	$2,749.37	$292.09	$49,177.89
344	Jun 10, 2055	$3,041.46	$2,764.83	$276.63	$46,413.06
345	Jul 10, 2055	$3,041.46	$2,780.38	$261.07	$43,632.67
346	Aug 10, 2055	$3,041.46	$2,796.02	$245.43	$40,836.65
347	Sep 10, 2055	$3,041.46	$2,811.75	$229.71	$38,024.90
348	Oct 10, 2055	$3,041.46	$2,827.57	$213.89	$35,197.34
349	Nov 10, 2055	$3,041.46	$2,843.47	$197.99	$32,353.87
350	Dec 10, 2055	$3,041.46	$2,859.47	$181.99	$29,494.40
351	Jan 10, 2056	$3,041.46	$2,875.55	$165.91	$26,618.85
352	Feb 10, 2056	$3,041.46	$2,891.73	$149.73	$23,727.13
353	Mar 10, 2056	$3,041.46	$2,907.99	$133.47	$20,819.13
354	Apr 10, 2056	$3,041.46	$2,924.35	$117.11	$17,894.79
355	May 10, 2056	$3,041.46	$2,940.80	$100.66	$14,953.99
356	Jun 10, 2056	$3,041.46	$2,957.34	$84.12	$11,996.65
357	Jul 10, 2056	$3,041.46	$2,973.97	$67.48	$9,022.67
358	Aug 10, 2056	$3,041.46	$2,990.70	$50.75	$6,031.97
359	Sep 10, 2056	$3,041.46	$3,007.53	$33.93	$3,024.44
360	Oct 10, 2056	$3,041.46	$3,024.44	$17.01	$0.00
Total		$999,949.45	$400,000.00	$599,949.45

An interest-only mortgage lets you pay just the interest for an initial period — commonly five, seven or ten years — before principal payments begin. The early payments are lower than on a standard loan, but the balance does not shrink, and when the interest-only period ends the whole loan has to be repaid over fewer years. This calculator shows both payments, the size of the jump and what the structure costs compared with a conventional mortgage.

How to use the interest-only mortgage calculator

Enter the loan amount and interest rate.
Choose the total loan term and the length of the interest-only period in years.
Optionally add extra principal you plan to pay each month during the interest-only years.
Add a first payment date to see the reset date and the payoff date.
Compare the two payments, the balance chart and the side-by-side table with a standard loan.

Interest-only payment formulas

During the interest-only period the payment covers only the interest:

I = P × r

After the period ends, the remaining balance B is amortized over the months left, m:

M = B × r(1 + r)^m ÷ [(1 + r)^m − 1]

Here r is the annual rate ÷ 12. With no extra payments, B equals the original loan amount.

Worked example

A $400,000 loan at 6.75% with a 30-year term and a 10-year interest-only period:

Monthly rate: 0.0675 ÷ 12 = 0.005625

Years 1–10: 400,000 × 0.005625 = $2,250.00 a month

Years 11–30: $400,000 amortized over 240 months = $3,041.46 a month, an increase of $791.46 (about 35%)

Total interest: $599,949.45, versus $533,981.26 on a standard 30-year loan paying $2,594.39 a month

By year 10, the standard borrower has repaid about $58,796 of principal; the interest-only borrower still owes all $400,000.

How the interest-only period changes the cost

Same loan, same rate:

Interest-only period	Payment after reset	Extra interest vs. standard
5 years	$2,763.65	$30,112.57
7 years	$2,857.65	$43,731.40
10 years	$3,041.46	$65,968.19

A longer interest-only period keeps the low payment longer but makes the eventual payment steeper and the total interest higher.

Paying principal anyway

If you add $500 a month of principal during the 10 interest-only years, the balance at reset falls to $340,000, the later payment drops to about $2,585 and total interest ends up slightly below the standard loan. That flexibility — paying more when cash flow allows — is the main legitimate appeal of the structure.

Risks to weigh

Payment shock. Budget for the reset payment, not the introductory one. Lenders typically qualify you on the higher amount.
No equity from payments. If home prices fall, you can owe more than the house is worth, which makes selling or refinancing difficult.
Rate changes. Many interest-only loans are adjustable-rate mortgages, so the payment after the reset can also move with rates. This calculator assumes a fixed rate throughout.

To compare with a conventional loan including taxes and insurance, use the mortgage calculator. To check whether the reset payment fits your income, try how much house can I afford.

Estimates only, covering principal and interest. Actual loan terms, rate adjustments and qualification rules vary by lender.

Frequently asked questions

How is an interest-only mortgage payment calculated?

Multiply the loan balance by the monthly rate (the annual rate divided by 12). A $400,000 loan at 6.75% has an interest-only payment of 400,000 × 0.005625 = $2,250 a month. None of that payment reduces the balance.

What happens when the interest-only period ends?

The full balance must be repaid over the years that remain, so the payment jumps. With a 10-year interest-only period on a 30-year loan, the $400,000 is amortized over 20 years and the payment rises to about $3,041, roughly 35% more.

Do interest-only loans cost more in total?

Usually yes, because the balance stays at its maximum for years and interest is charged on all of it. In the example, total interest is about $66,000 higher than on a standard 30-year loan at the same rate.

Can I pay principal during the interest-only period?

Most interest-only loans allow it without penalty. Extra principal lowers the balance, which reduces both the interest you owe each month and the payment after the reset. Enter an amount in the extra-principal field to see the effect.

Who uses interest-only mortgages?

They are mostly used by borrowers with irregular or rising income, such as commission earners or business owners, by investors who expect to sell before the reset, and on some jumbo loans. They require discipline, since home equity only grows through price appreciation or voluntary principal payments.

Last reviewed October 2026 by the CalcFluent editorial team. How we check our calculators.