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Interest Only Loan

Use this calculator to generate an amortization schedule for an interest only mortgage. Quickly see how much interest you will pay and your principal balances. You can even determine the impact of any principal prepayments! Press the "View Report" button for a full yearly or monthly amortization schedule.

Interest Only Mortgage

Your payment is MONTHLY_PI with an interest rate of INTEREST_RATE.


Your payment of MONTHLY_PI is fixed for RECAST_TO_AMORTIZE_YEARS years while your mortgage payments are interest only. After RECAST_TO_AMORTIZE_YEARS years of interest only payments, your monthly payment will increase to FULLY_INDEXED_PAYMENT. This will pay off the loan balance in full after a total of TERM years (this does not include any prepayments).

Interest Only Mortgage Summary
Payments RECAST_TO_AMORTIZE monthly payments of MONTHLY_PI
Loan amount LOAN_AMOUNT
Interest rate INTEREST_RATE
Interest only term RECAST_TO_AMORTIZE_YEARS years
Total Term
(Including interest only period)
TERM years
Total payments TOTAL_OF_PAYMENTS
Total interest paid INTEREST_PAID

Prepayment Results

Principal prepayments on your mortgage can save you a great deal of interest. Below is a summary of your proposed prepayments.

Prepayment Summary
Start with payment PREPAY_STARTS_WITH 

Payment schedule



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Mortgage amount
Original or expected balance for your mortgage.

Term of loan
The total number of years over which you will make payments on this mortgage. This calculator assumes that after any interest only period has expired, the monthly payment will increase so that the remaining balance will be amortized over the remaining years of the loan. This will result in the mortgage balance being paid in full at the end of the loan term.

Interest only period
The number of years this loan requires interest only payments. At the end of this period, the loan payment will increase so that the remaining balance will be amortized over the remaining years of the loan.

Interest rate
Annual interest rate for this mortgage.

Monthly payment
This is the initial monthly payment. This payment includes only the interest on the loan balance.

Total payments
Total of all monthly payments over the full term of the mortgage. This total payment amount assumes that there are no prepayments of principal.

Total interest
Total of all interest paid over the full term of the mortgage. This total interest amount assumes that there are no prepayments of principal.

Prepayment type
The frequency of prepayment. The options are: none, monthly, yearly, and one-time payment.

Prepayment amount
Amount that will be prepaid on your mortgage. This amount will be applied to the mortgage principal balance, based on the prepayment type.

Start with payment
This is the payment number that your prepayments will begin with. For a one time payment, this is the payment number that the single prepayment will be included in. All prepayments of principal are assumed to be received by your lender in time to be included in the following month's interest calculation. If you choose to prepay with a one-time payment for payment number ZERO, the prepayment is assumed to happen before the first payment of the loan.

Total amount of interest you will save by prepaying your mortgage.

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