Interest-Only Mortgage

An interest-only mortgage is a home loan where monthly payments cover only the interest, not the capital. The full loan balance remains outstanding until the end of the mortgage term

The calculator uses the standard published formula for interest only mortgage. Results are accurate to the precision of the inputs you provide. For financial, medical, or legal decisions, always verify with a qualified professional.

This calculator works with inches, percentages. You can enter values in the units shown — the calculator handles all conversions internally.

The core formula is: Monthly payment = Loan balance × (Annual interest rate / 12). Each step in the calculation is shown so you can verify the result manually.