Estimate the low payment during an interest-only period and the higher payment required when principal repayment begins.
The sample values are calculated automatically. Enter your own information for a new estimate.
These calculators provide mathematical estimates for education and planning. Loan agreements, lender practices, fees, taxes, payment dates, and rounding can change actual results.
How the calculation works
An interest-only payment covers interest but does not reduce principal. The balance therefore stays level during the interest-only phase.
When principal repayment begins, the payment increases because the original balance must be repaid over the remaining years.
A longer interest-only period generally increases total interest and delays equity growth.
Use the free online amortization calculator to view every payment, annual totals, charts, extra payments, rate changes, and balloon dates.
Open the free schedule calculatorAmortization Pro lets you edit individual payment rows, save and retrieve loans, export CSV files, and print complete reports. One-time price: $25.
Download Amortization ProNo, not unless extra principal is paid. The scheduled interest-only payment covers interest only.
The entire principal must then be repaid over fewer remaining years.
A true interest-only payment covers all current interest. Negative amortization occurs when the payment is less than the interest due and unpaid interest is added to the balance.