Interest Only Mortgage Calculator

Calculate interest-only mortgage payments, compare with traditional amortizing loans, and see total costs over the life of the loan including the balloon payment.

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Financial Disclaimer

This calculator is for educational and informational purposes only. The results provided are estimates based on the information you input and should not be considered financial, tax, or legal advice. Consult with a qualified financial advisor, tax professional, or attorney before making any financial decisions. We do not guarantee the accuracy, completeness, or usefulness of this information, and we are not responsible for any losses or damages arising from its use.

Calculate payments for interest-only mortgages with payment shock analysis

Loan Details

Loan Terms

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Positive = rate increase, Negative = rate decrease

About Interest-Only Mortgages

  • • Interest-only mortgages offer lower initial payments but will increase significantly after the IO period
  • • Payment shock occurs when the loan transitions to full amortization - plan your budget accordingly
  • • Interest-only loans typically cost more in total interest compared to fully amortizing loans
  • • Consider your long-term plans - if you'll sell before the IO period ends, this may be a good option
  • • Some loans allow you to make principal payments during the IO period to reduce future payment shock

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