Interest-Only Mortgage Calculator

An interest-only mortgage lets you pay just the interest for the first 3 to 10 years, then repay the whole loan over the years that are left. Enter the home price, down payment, rate, term and interest-only period to see the payment now, the payment after the interest-only years end, and how much more interest you pay than on a standard mortgage.

Interest-only payment$2,333.33Principal and interest for the first 120 months

Payment from year 11: $3,101.20
Payment increase: $767.87
Standard 30-year payment (for comparison): $2,661.21
Loan amount: $400,000.00
Balance after 10 years, interest-only: $400,000.00
Balance after 10 years, standard loan: $343,249.59
Total interest, interest-only loan: $624,285.37
Total interest, standard loan: $558,035.91
Extra interest from the interest-only period: $66,249.46

The payment rises 33% when the interest-only period ends. Make sure you can afford $3,101.20 a month, or have a plan to sell or refinance before the interest-only period ends.

After 10 years the full $400,000.00 is repaid over the remaining 20 years, so the later payment is higher than a standard 30-year payment. Payments shown are principal and interest only; taxes, insurance and any HOA dues are extra.

Amortization schedule

Year	Payment	Principal	Interest	Balance
1	$27,999.96	$0.00	$27,999.96	$400,000.00
2	$27,999.96	$0.00	$27,999.96	$400,000.00
3	$27,999.96	$0.00	$27,999.96	$400,000.00
4	$27,999.96	$0.00	$27,999.96	$400,000.00
5	$27,999.96	$0.00	$27,999.96	$400,000.00
6	$27,999.96	$0.00	$27,999.96	$400,000.00
7	$27,999.96	$0.00	$27,999.96	$400,000.00
8	$27,999.96	$0.00	$27,999.96	$400,000.00
9	$27,999.96	$0.00	$27,999.96	$400,000.00
10	$27,999.96	$0.00	$27,999.96	$400,000.00
11	$37,214.40	$9,515.86	$27,698.54	$390,484.14
12	$37,214.40	$10,203.77	$27,010.63	$380,280.37
13	$37,214.40	$10,941.39	$26,273.01	$369,338.98
14	$37,214.40	$11,732.34	$25,482.06	$357,606.64
15	$37,214.40	$12,580.47	$24,633.93	$345,026.17
16	$37,214.40	$13,489.93	$23,724.47	$331,536.24
17	$37,214.40	$14,465.09	$22,749.31	$317,071.15
18	$37,214.40	$15,510.78	$21,703.62	$301,560.37
19	$37,214.40	$16,632.05	$20,582.35	$284,928.32
20	$37,214.40	$17,834.38	$19,380.02	$267,093.94
21	$37,214.40	$19,123.64	$18,090.76	$247,970.30
22	$37,214.40	$20,506.10	$16,708.30	$227,464.20
23	$37,214.40	$21,988.50	$15,225.90	$205,475.70
24	$37,214.40	$23,578.03	$13,636.37	$181,897.67
25	$37,214.40	$25,282.47	$11,931.93	$156,615.20
26	$37,214.40	$27,110.16	$10,104.24	$129,505.04
27	$37,214.40	$29,069.94	$8,144.46	$100,435.10
28	$37,214.40	$31,171.43	$6,042.97	$69,263.67
29	$37,214.40	$33,424.81	$3,789.59	$35,838.86
30	$37,212.17	$35,838.86	$1,373.31	$0.00

Month	Payment	Principal	Interest	Balance
1	$2,333.33	$0.00	$2,333.33	$400,000.00
2	$2,333.33	$0.00	$2,333.33	$400,000.00
3	$2,333.33	$0.00	$2,333.33	$400,000.00
4	$2,333.33	$0.00	$2,333.33	$400,000.00
5	$2,333.33	$0.00	$2,333.33	$400,000.00
6	$2,333.33	$0.00	$2,333.33	$400,000.00
7	$2,333.33	$0.00	$2,333.33	$400,000.00
8	$2,333.33	$0.00	$2,333.33	$400,000.00
9	$2,333.33	$0.00	$2,333.33	$400,000.00
10	$2,333.33	$0.00	$2,333.33	$400,000.00
11	$2,333.33	$0.00	$2,333.33	$400,000.00
12	$2,333.33	$0.00	$2,333.33	$400,000.00
13	$2,333.33	$0.00	$2,333.33	$400,000.00
14	$2,333.33	$0.00	$2,333.33	$400,000.00
15	$2,333.33	$0.00	$2,333.33	$400,000.00
16	$2,333.33	$0.00	$2,333.33	$400,000.00
17	$2,333.33	$0.00	$2,333.33	$400,000.00
18	$2,333.33	$0.00	$2,333.33	$400,000.00
19	$2,333.33	$0.00	$2,333.33	$400,000.00
20	$2,333.33	$0.00	$2,333.33	$400,000.00
21	$2,333.33	$0.00	$2,333.33	$400,000.00
22	$2,333.33	$0.00	$2,333.33	$400,000.00
23	$2,333.33	$0.00	$2,333.33	$400,000.00
24	$2,333.33	$0.00	$2,333.33	$400,000.00
25	$2,333.33	$0.00	$2,333.33	$400,000.00
26	$2,333.33	$0.00	$2,333.33	$400,000.00
27	$2,333.33	$0.00	$2,333.33	$400,000.00
28	$2,333.33	$0.00	$2,333.33	$400,000.00
29	$2,333.33	$0.00	$2,333.33	$400,000.00
30	$2,333.33	$0.00	$2,333.33	$400,000.00
31	$2,333.33	$0.00	$2,333.33	$400,000.00
32	$2,333.33	$0.00	$2,333.33	$400,000.00
33	$2,333.33	$0.00	$2,333.33	$400,000.00
34	$2,333.33	$0.00	$2,333.33	$400,000.00
35	$2,333.33	$0.00	$2,333.33	$400,000.00
36	$2,333.33	$0.00	$2,333.33	$400,000.00
37	$2,333.33	$0.00	$2,333.33	$400,000.00
38	$2,333.33	$0.00	$2,333.33	$400,000.00
39	$2,333.33	$0.00	$2,333.33	$400,000.00
40	$2,333.33	$0.00	$2,333.33	$400,000.00
41	$2,333.33	$0.00	$2,333.33	$400,000.00
42	$2,333.33	$0.00	$2,333.33	$400,000.00
43	$2,333.33	$0.00	$2,333.33	$400,000.00
44	$2,333.33	$0.00	$2,333.33	$400,000.00
45	$2,333.33	$0.00	$2,333.33	$400,000.00
46	$2,333.33	$0.00	$2,333.33	$400,000.00
47	$2,333.33	$0.00	$2,333.33	$400,000.00
48	$2,333.33	$0.00	$2,333.33	$400,000.00
49	$2,333.33	$0.00	$2,333.33	$400,000.00
50	$2,333.33	$0.00	$2,333.33	$400,000.00
51	$2,333.33	$0.00	$2,333.33	$400,000.00
52	$2,333.33	$0.00	$2,333.33	$400,000.00
53	$2,333.33	$0.00	$2,333.33	$400,000.00
54	$2,333.33	$0.00	$2,333.33	$400,000.00
55	$2,333.33	$0.00	$2,333.33	$400,000.00
56	$2,333.33	$0.00	$2,333.33	$400,000.00
57	$2,333.33	$0.00	$2,333.33	$400,000.00
58	$2,333.33	$0.00	$2,333.33	$400,000.00
59	$2,333.33	$0.00	$2,333.33	$400,000.00
60	$2,333.33	$0.00	$2,333.33	$400,000.00
61	$2,333.33	$0.00	$2,333.33	$400,000.00
62	$2,333.33	$0.00	$2,333.33	$400,000.00
63	$2,333.33	$0.00	$2,333.33	$400,000.00
64	$2,333.33	$0.00	$2,333.33	$400,000.00
65	$2,333.33	$0.00	$2,333.33	$400,000.00
66	$2,333.33	$0.00	$2,333.33	$400,000.00
67	$2,333.33	$0.00	$2,333.33	$400,000.00
68	$2,333.33	$0.00	$2,333.33	$400,000.00
69	$2,333.33	$0.00	$2,333.33	$400,000.00
70	$2,333.33	$0.00	$2,333.33	$400,000.00
71	$2,333.33	$0.00	$2,333.33	$400,000.00
72	$2,333.33	$0.00	$2,333.33	$400,000.00
73	$2,333.33	$0.00	$2,333.33	$400,000.00
74	$2,333.33	$0.00	$2,333.33	$400,000.00
75	$2,333.33	$0.00	$2,333.33	$400,000.00
76	$2,333.33	$0.00	$2,333.33	$400,000.00
77	$2,333.33	$0.00	$2,333.33	$400,000.00
78	$2,333.33	$0.00	$2,333.33	$400,000.00
79	$2,333.33	$0.00	$2,333.33	$400,000.00
80	$2,333.33	$0.00	$2,333.33	$400,000.00
81	$2,333.33	$0.00	$2,333.33	$400,000.00
82	$2,333.33	$0.00	$2,333.33	$400,000.00
83	$2,333.33	$0.00	$2,333.33	$400,000.00
84	$2,333.33	$0.00	$2,333.33	$400,000.00
85	$2,333.33	$0.00	$2,333.33	$400,000.00
86	$2,333.33	$0.00	$2,333.33	$400,000.00
87	$2,333.33	$0.00	$2,333.33	$400,000.00
88	$2,333.33	$0.00	$2,333.33	$400,000.00
89	$2,333.33	$0.00	$2,333.33	$400,000.00
90	$2,333.33	$0.00	$2,333.33	$400,000.00
91	$2,333.33	$0.00	$2,333.33	$400,000.00
92	$2,333.33	$0.00	$2,333.33	$400,000.00
93	$2,333.33	$0.00	$2,333.33	$400,000.00
94	$2,333.33	$0.00	$2,333.33	$400,000.00
95	$2,333.33	$0.00	$2,333.33	$400,000.00
96	$2,333.33	$0.00	$2,333.33	$400,000.00
97	$2,333.33	$0.00	$2,333.33	$400,000.00
98	$2,333.33	$0.00	$2,333.33	$400,000.00
99	$2,333.33	$0.00	$2,333.33	$400,000.00
100	$2,333.33	$0.00	$2,333.33	$400,000.00
101	$2,333.33	$0.00	$2,333.33	$400,000.00
102	$2,333.33	$0.00	$2,333.33	$400,000.00
103	$2,333.33	$0.00	$2,333.33	$400,000.00
104	$2,333.33	$0.00	$2,333.33	$400,000.00
105	$2,333.33	$0.00	$2,333.33	$400,000.00
106	$2,333.33	$0.00	$2,333.33	$400,000.00
107	$2,333.33	$0.00	$2,333.33	$400,000.00
108	$2,333.33	$0.00	$2,333.33	$400,000.00
109	$2,333.33	$0.00	$2,333.33	$400,000.00
110	$2,333.33	$0.00	$2,333.33	$400,000.00
111	$2,333.33	$0.00	$2,333.33	$400,000.00
112	$2,333.33	$0.00	$2,333.33	$400,000.00
113	$2,333.33	$0.00	$2,333.33	$400,000.00
114	$2,333.33	$0.00	$2,333.33	$400,000.00
115	$2,333.33	$0.00	$2,333.33	$400,000.00
116	$2,333.33	$0.00	$2,333.33	$400,000.00
117	$2,333.33	$0.00	$2,333.33	$400,000.00
118	$2,333.33	$0.00	$2,333.33	$400,000.00
119	$2,333.33	$0.00	$2,333.33	$400,000.00
120	$2,333.33	$0.00	$2,333.33	$400,000.00
121	$3,101.20	$767.87	$2,333.33	$399,232.13
122	$3,101.20	$772.35	$2,328.85	$398,459.78
123	$3,101.20	$776.85	$2,324.35	$397,682.93
124	$3,101.20	$781.38	$2,319.82	$396,901.55
125	$3,101.20	$785.94	$2,315.26	$396,115.61
126	$3,101.20	$790.53	$2,310.67	$395,325.08
127	$3,101.20	$795.14	$2,306.06	$394,529.94
128	$3,101.20	$799.78	$2,301.42	$393,730.16
129	$3,101.20	$804.44	$2,296.76	$392,925.72
130	$3,101.20	$809.13	$2,292.07	$392,116.59
131	$3,101.20	$813.85	$2,287.35	$391,302.74
132	$3,101.20	$818.60	$2,282.60	$390,484.14
133	$3,101.20	$823.38	$2,277.82	$389,660.76
134	$3,101.20	$828.18	$2,273.02	$388,832.58
135	$3,101.20	$833.01	$2,268.19	$387,999.57
136	$3,101.20	$837.87	$2,263.33	$387,161.70
137	$3,101.20	$842.76	$2,258.44	$386,318.94
138	$3,101.20	$847.67	$2,253.53	$385,471.27
139	$3,101.20	$852.62	$2,248.58	$384,618.65
140	$3,101.20	$857.59	$2,243.61	$383,761.06
141	$3,101.20	$862.59	$2,238.61	$382,898.47
142	$3,101.20	$867.63	$2,233.57	$382,030.84
143	$3,101.20	$872.69	$2,228.51	$381,158.15
144	$3,101.20	$877.78	$2,223.42	$380,280.37
145	$3,101.20	$882.90	$2,218.30	$379,397.47
146	$3,101.20	$888.05	$2,213.15	$378,509.42
147	$3,101.20	$893.23	$2,207.97	$377,616.19
148	$3,101.20	$898.44	$2,202.76	$376,717.75
149	$3,101.20	$903.68	$2,197.52	$375,814.07
150	$3,101.20	$908.95	$2,192.25	$374,905.12
151	$3,101.20	$914.25	$2,186.95	$373,990.87
152	$3,101.20	$919.59	$2,181.61	$373,071.28
153	$3,101.20	$924.95	$2,176.25	$372,146.33
154	$3,101.20	$930.35	$2,170.85	$371,215.98
155	$3,101.20	$935.77	$2,165.43	$370,280.21
156	$3,101.20	$941.23	$2,159.97	$369,338.98
157	$3,101.20	$946.72	$2,154.48	$368,392.26
158	$3,101.20	$952.25	$2,148.95	$367,440.01
159	$3,101.20	$957.80	$2,143.40	$366,482.21
160	$3,101.20	$963.39	$2,137.81	$365,518.82
161	$3,101.20	$969.01	$2,132.19	$364,549.81
162	$3,101.20	$974.66	$2,126.54	$363,575.15
163	$3,101.20	$980.34	$2,120.86	$362,594.81
164	$3,101.20	$986.06	$2,115.14	$361,608.75
165	$3,101.20	$991.82	$2,109.38	$360,616.93
166	$3,101.20	$997.60	$2,103.60	$359,619.33
167	$3,101.20	$1,003.42	$2,097.78	$358,615.91
168	$3,101.20	$1,009.27	$2,091.93	$357,606.64
169	$3,101.20	$1,015.16	$2,086.04	$356,591.48
170	$3,101.20	$1,021.08	$2,080.12	$355,570.40
171	$3,101.20	$1,027.04	$2,074.16	$354,543.36
172	$3,101.20	$1,033.03	$2,068.17	$353,510.33
173	$3,101.20	$1,039.06	$2,062.14	$352,471.27
174	$3,101.20	$1,045.12	$2,056.08	$351,426.15
175	$3,101.20	$1,051.21	$2,049.99	$350,374.94
176	$3,101.20	$1,057.35	$2,043.85	$349,317.59
177	$3,101.20	$1,063.51	$2,037.69	$348,254.08
178	$3,101.20	$1,069.72	$2,031.48	$347,184.36
179	$3,101.20	$1,075.96	$2,025.24	$346,108.40
180	$3,101.20	$1,082.23	$2,018.97	$345,026.17
181	$3,101.20	$1,088.55	$2,012.65	$343,937.62
182	$3,101.20	$1,094.90	$2,006.30	$342,842.72
183	$3,101.20	$1,101.28	$1,999.92	$341,741.44
184	$3,101.20	$1,107.71	$1,993.49	$340,633.73
185	$3,101.20	$1,114.17	$1,987.03	$339,519.56
186	$3,101.20	$1,120.67	$1,980.53	$338,398.89
187	$3,101.20	$1,127.21	$1,973.99	$337,271.68
188	$3,101.20	$1,133.78	$1,967.42	$336,137.90
189	$3,101.20	$1,140.40	$1,960.80	$334,997.50
190	$3,101.20	$1,147.05	$1,954.15	$333,850.45
191	$3,101.20	$1,153.74	$1,947.46	$332,696.71
192	$3,101.20	$1,160.47	$1,940.73	$331,536.24
193	$3,101.20	$1,167.24	$1,933.96	$330,369.00
194	$3,101.20	$1,174.05	$1,927.15	$329,194.95
195	$3,101.20	$1,180.90	$1,920.30	$328,014.05
196	$3,101.20	$1,187.78	$1,913.42	$326,826.27
197	$3,101.20	$1,194.71	$1,906.49	$325,631.56
198	$3,101.20	$1,201.68	$1,899.52	$324,429.88
199	$3,101.20	$1,208.69	$1,892.51	$323,221.19
200	$3,101.20	$1,215.74	$1,885.46	$322,005.45
201	$3,101.20	$1,222.83	$1,878.37	$320,782.62
202	$3,101.20	$1,229.97	$1,871.23	$319,552.65
203	$3,101.20	$1,237.14	$1,864.06	$318,315.51
204	$3,101.20	$1,244.36	$1,856.84	$317,071.15
205	$3,101.20	$1,251.62	$1,849.58	$315,819.53
206	$3,101.20	$1,258.92	$1,842.28	$314,560.61
207	$3,101.20	$1,266.26	$1,834.94	$313,294.35
208	$3,101.20	$1,273.65	$1,827.55	$312,020.70
209	$3,101.20	$1,281.08	$1,820.12	$310,739.62
210	$3,101.20	$1,288.55	$1,812.65	$309,451.07
211	$3,101.20	$1,296.07	$1,805.13	$308,155.00
212	$3,101.20	$1,303.63	$1,797.57	$306,851.37
213	$3,101.20	$1,311.23	$1,789.97	$305,540.14
214	$3,101.20	$1,318.88	$1,782.32	$304,221.26
215	$3,101.20	$1,326.58	$1,774.62	$302,894.68
216	$3,101.20	$1,334.31	$1,766.89	$301,560.37
217	$3,101.20	$1,342.10	$1,759.10	$300,218.27
218	$3,101.20	$1,349.93	$1,751.27	$298,868.34
219	$3,101.20	$1,357.80	$1,743.40	$297,510.54
220	$3,101.20	$1,365.72	$1,735.48	$296,144.82
221	$3,101.20	$1,373.69	$1,727.51	$294,771.13
222	$3,101.20	$1,381.70	$1,719.50	$293,389.43
223	$3,101.20	$1,389.76	$1,711.44	$291,999.67
224	$3,101.20	$1,397.87	$1,703.33	$290,601.80
225	$3,101.20	$1,406.02	$1,695.18	$289,195.78
226	$3,101.20	$1,414.22	$1,686.98	$287,781.56
227	$3,101.20	$1,422.47	$1,678.73	$286,359.09
228	$3,101.20	$1,430.77	$1,670.43	$284,928.32
229	$3,101.20	$1,439.12	$1,662.08	$283,489.20
230	$3,101.20	$1,447.51	$1,653.69	$282,041.69
231	$3,101.20	$1,455.96	$1,645.24	$280,585.73
232	$3,101.20	$1,464.45	$1,636.75	$279,121.28
233	$3,101.20	$1,472.99	$1,628.21	$277,648.29
234	$3,101.20	$1,481.58	$1,619.62	$276,166.71
235	$3,101.20	$1,490.23	$1,610.97	$274,676.48
236	$3,101.20	$1,498.92	$1,602.28	$273,177.56
237	$3,101.20	$1,507.66	$1,593.54	$271,669.90
238	$3,101.20	$1,516.46	$1,584.74	$270,153.44
239	$3,101.20	$1,525.30	$1,575.90	$268,628.14
240	$3,101.20	$1,534.20	$1,567.00	$267,093.94
241	$3,101.20	$1,543.15	$1,558.05	$265,550.79
242	$3,101.20	$1,552.15	$1,549.05	$263,998.64
243	$3,101.20	$1,561.21	$1,539.99	$262,437.43
244	$3,101.20	$1,570.31	$1,530.89	$260,867.12
245	$3,101.20	$1,579.48	$1,521.72	$259,287.64
246	$3,101.20	$1,588.69	$1,512.51	$257,698.95
247	$3,101.20	$1,597.96	$1,503.24	$256,100.99
248	$3,101.20	$1,607.28	$1,493.92	$254,493.71
249	$3,101.20	$1,616.65	$1,484.55	$252,877.06
250	$3,101.20	$1,626.08	$1,475.12	$251,250.98
251	$3,101.20	$1,635.57	$1,465.63	$249,615.41
252	$3,101.20	$1,645.11	$1,456.09	$247,970.30
253	$3,101.20	$1,654.71	$1,446.49	$246,315.59
254	$3,101.20	$1,664.36	$1,436.84	$244,651.23
255	$3,101.20	$1,674.07	$1,427.13	$242,977.16
256	$3,101.20	$1,683.83	$1,417.37	$241,293.33
257	$3,101.20	$1,693.66	$1,407.54	$239,599.67
258	$3,101.20	$1,703.54	$1,397.66	$237,896.13
259	$3,101.20	$1,713.47	$1,387.73	$236,182.66
260	$3,101.20	$1,723.47	$1,377.73	$234,459.19
261	$3,101.20	$1,733.52	$1,367.68	$232,725.67
262	$3,101.20	$1,743.63	$1,357.57	$230,982.04
263	$3,101.20	$1,753.80	$1,347.40	$229,228.24
264	$3,101.20	$1,764.04	$1,337.16	$227,464.20
265	$3,101.20	$1,774.33	$1,326.87	$225,689.87
266	$3,101.20	$1,784.68	$1,316.52	$223,905.19
267	$3,101.20	$1,795.09	$1,306.11	$222,110.10
268	$3,101.20	$1,805.56	$1,295.64	$220,304.54
269	$3,101.20	$1,816.09	$1,285.11	$218,488.45
270	$3,101.20	$1,826.68	$1,274.52	$216,661.77
271	$3,101.20	$1,837.34	$1,263.86	$214,824.43
272	$3,101.20	$1,848.06	$1,253.14	$212,976.37
273	$3,101.20	$1,858.84	$1,242.36	$211,117.53
274	$3,101.20	$1,869.68	$1,231.52	$209,247.85
275	$3,101.20	$1,880.59	$1,220.61	$207,367.26
276	$3,101.20	$1,891.56	$1,209.64	$205,475.70
277	$3,101.20	$1,902.59	$1,198.61	$203,573.11
278	$3,101.20	$1,913.69	$1,187.51	$201,659.42
279	$3,101.20	$1,924.85	$1,176.35	$199,734.57
280	$3,101.20	$1,936.08	$1,165.12	$197,798.49
281	$3,101.20	$1,947.38	$1,153.82	$195,851.11
282	$3,101.20	$1,958.74	$1,142.46	$193,892.37
283	$3,101.20	$1,970.16	$1,131.04	$191,922.21
284	$3,101.20	$1,981.65	$1,119.55	$189,940.56
285	$3,101.20	$1,993.21	$1,107.99	$187,947.35
286	$3,101.20	$2,004.84	$1,096.36	$185,942.51
287	$3,101.20	$2,016.54	$1,084.66	$183,925.97
288	$3,101.20	$2,028.30	$1,072.90	$181,897.67
289	$3,101.20	$2,040.13	$1,061.07	$179,857.54
290	$3,101.20	$2,052.03	$1,049.17	$177,805.51
291	$3,101.20	$2,064.00	$1,037.20	$175,741.51
292	$3,101.20	$2,076.04	$1,025.16	$173,665.47
293	$3,101.20	$2,088.15	$1,013.05	$171,577.32
294	$3,101.20	$2,100.33	$1,000.87	$169,476.99
295	$3,101.20	$2,112.58	$988.62	$167,364.41
296	$3,101.20	$2,124.91	$976.29	$165,239.50
297	$3,101.20	$2,137.30	$963.90	$163,102.20
298	$3,101.20	$2,149.77	$951.43	$160,952.43
299	$3,101.20	$2,162.31	$938.89	$158,790.12
300	$3,101.20	$2,174.92	$926.28	$156,615.20
301	$3,101.20	$2,187.61	$913.59	$154,427.59
302	$3,101.20	$2,200.37	$900.83	$152,227.22
303	$3,101.20	$2,213.21	$887.99	$150,014.01
304	$3,101.20	$2,226.12	$875.08	$147,787.89
305	$3,101.20	$2,239.10	$862.10	$145,548.79
306	$3,101.20	$2,252.17	$849.03	$143,296.62
307	$3,101.20	$2,265.30	$835.90	$141,031.32
308	$3,101.20	$2,278.52	$822.68	$138,752.80
309	$3,101.20	$2,291.81	$809.39	$136,460.99
310	$3,101.20	$2,305.18	$796.02	$134,155.81
311	$3,101.20	$2,318.62	$782.58	$131,837.19
312	$3,101.20	$2,332.15	$769.05	$129,505.04
313	$3,101.20	$2,345.75	$755.45	$127,159.29
314	$3,101.20	$2,359.44	$741.76	$124,799.85
315	$3,101.20	$2,373.20	$728.00	$122,426.65
316	$3,101.20	$2,387.04	$714.16	$120,039.61
317	$3,101.20	$2,400.97	$700.23	$117,638.64
318	$3,101.20	$2,414.97	$686.23	$115,223.67
319	$3,101.20	$2,429.06	$672.14	$112,794.61
320	$3,101.20	$2,443.23	$657.97	$110,351.38
321	$3,101.20	$2,457.48	$643.72	$107,893.90
322	$3,101.20	$2,471.82	$629.38	$105,422.08
323	$3,101.20	$2,486.24	$614.96	$102,935.84
324	$3,101.20	$2,500.74	$600.46	$100,435.10
325	$3,101.20	$2,515.33	$585.87	$97,919.77
326	$3,101.20	$2,530.00	$571.20	$95,389.77
327	$3,101.20	$2,544.76	$556.44	$92,845.01
328	$3,101.20	$2,559.60	$541.60	$90,285.41
329	$3,101.20	$2,574.54	$526.66	$87,710.87
330	$3,101.20	$2,589.55	$511.65	$85,121.32
331	$3,101.20	$2,604.66	$496.54	$82,516.66
332	$3,101.20	$2,619.85	$481.35	$79,896.81
333	$3,101.20	$2,635.14	$466.06	$77,261.67
334	$3,101.20	$2,650.51	$450.69	$74,611.16
335	$3,101.20	$2,665.97	$435.23	$71,945.19
336	$3,101.20	$2,681.52	$419.68	$69,263.67
337	$3,101.20	$2,697.16	$404.04	$66,566.51
338	$3,101.20	$2,712.90	$388.30	$63,853.61
339	$3,101.20	$2,728.72	$372.48	$61,124.89
340	$3,101.20	$2,744.64	$356.56	$58,380.25
341	$3,101.20	$2,760.65	$340.55	$55,619.60
342	$3,101.20	$2,776.75	$324.45	$52,842.85
343	$3,101.20	$2,792.95	$308.25	$50,049.90
344	$3,101.20	$2,809.24	$291.96	$47,240.66
345	$3,101.20	$2,825.63	$275.57	$44,415.03
346	$3,101.20	$2,842.11	$259.09	$41,572.92
347	$3,101.20	$2,858.69	$242.51	$38,714.23
348	$3,101.20	$2,875.37	$225.83	$35,838.86
349	$3,101.20	$2,892.14	$209.06	$32,946.72
350	$3,101.20	$2,909.01	$192.19	$30,037.71
351	$3,101.20	$2,925.98	$175.22	$27,111.73
352	$3,101.20	$2,943.05	$158.15	$24,168.68
353	$3,101.20	$2,960.22	$140.98	$21,208.46
354	$3,101.20	$2,977.48	$123.72	$18,230.98
355	$3,101.20	$2,994.85	$106.35	$15,236.13
356	$3,101.20	$3,012.32	$88.88	$12,223.81
357	$3,101.20	$3,029.89	$71.31	$9,193.92
358	$3,101.20	$3,047.57	$53.63	$6,146.35
359	$3,101.20	$3,065.35	$35.85	$3,081.00
360	$3,098.97	$3,081.00	$17.97	$0.00

How the payments are calculated

Interest-only payment = loan amount × annual rate ÷ 12

Later payment = loan amount × r ÷ (1 − (1 + r)⁻ⁿ), where r = annual rate ÷ 12 and n = 12 × (term − interest-only years)

No principal is paid during the interest-only period, so the balance stays at the original loan amount. The full balance is then repaid over a shorter time, which makes the later payment higher than a standard payment on the same loan. Payments are rounded to the cent and interest is rounded each month. The rate is assumed fixed; on an adjustable-rate interest-only loan it can also change when the interest-only period ends.

Example

A $500,000 home with 20% down leaves a $400,000 loan. At 7% on a 30-year loan with a 10-year interest-only period, the payment is $2,333.33 a month for the first 120 months. In year 11 it rises to $3,101.20, 33% more, because the $400,000 must now be repaid in 20 years. A standard 30-year loan would cost $2,661.21 a month throughout and would be down to $343,249.59 after 10 years. Over the life of the loan the interest-only version costs $624,285.37 in interest, $66,249.46 more than the standard loan's $558,035.91.

With a 5-year interest-only period the later payment is $2,827.12 and the extra interest falls to $30,097.26. With 10% down ($450,000 borrowed) the interest-only payment is $2,625.00 and the payment from year 11 is $3,488.85.

When an interest-only loan makes sense

Interest-only mortgages are mostly offered as jumbo or non-qualified loans, usually with a larger down payment and stronger credit than a standard loan. They can suit borrowers with uneven income (commissions, bonuses) who pay down principal in lump sums, buyers who expect to sell or refinance before the interest-only period ends, and investors focused on monthly cash flow. The risks: you build no equity from payments during the interest-only years, the payment jumps when they end, and if home prices fall or rates rise, selling or refinancing may not be possible on good terms. You can usually pay extra principal during the interest-only period; on most loans that lowers the interest due, but check how your lender recalculates the payment.

Frequently asked questions

How is an interest-only mortgage payment calculated?

Multiply the loan amount by the annual interest rate and divide by 12. A $400,000 loan at 7% has an interest-only payment of $2,333.33 a month. Taxes, insurance and any HOA dues are added on top.

What happens when the interest-only period ends?

The loan starts amortizing: each payment includes principal, and the whole balance is repaid over the remaining term. Because that is shorter than the original term, the new payment is higher than a standard payment would have been. On a $400,000, 30-year loan at 7% with 10 interest-only years, it rises from $2,333.33 to $3,101.20.

Do I pay more interest with an interest-only mortgage?

Yes. The balance stays high for longer, so total interest is higher. In the $400,000 example at 7%, a 10-year interest-only period adds $66,249.46 in interest over 30 years compared with a standard loan.

Can I pay principal during the interest-only period?

Usually yes, without penalty, but check the loan terms. Extra principal lowers the balance, and on most interest-only loans that lowers the interest due each month.

Sources

Last reviewed October 25, 2026. How we review and test pages.

PmtCalc provides estimates for education and planning only. Results are not an offer of credit, a loan approval, or financial, tax or legal advice. Actual terms depend on the lender and your situation. How we calculate and test these results.