Interest-Only Loan Calculator

Calculate the monthly cost of an interest-only loan and the principal still owed afterward.

About this calculator

With an interest-only loan you pay just the interest for a set period; the principal stays unchanged and is due later.

These keep early payments low but cost more overall since the principal isn't reducing.

All calculations happen in your browser — your numbers are never sent anywhere. Results are estimates for guidance only, not financial advice.

Frequently asked questions

When are interest-only loans used?

For bridge financing, construction, or when borrowers expect higher income later.

Is the principal ever repaid?

Yes — after the interest-only period you must repay the full principal, often via a lump sum or a converted EMI.

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