Interest-Only Mortgage Calculator
Compare the initial interest-only payment with the later amortizing payment, unchanged principal during the interest-only phase, and total estimated interest. Lender-specific terms, fees, and financial advice are outside this estimate. Calculate it clearly with Figur.
Interest-Only Mortgage Calculator
Compare the initial interest-only payment with the later amortizing payment, unchanged principal during the interest-only phase, and total estimated interest. Lender-specific terms, fees, and financial advice are outside this estimate.
Method and assumptions
Figur first calculates monthly interest on the full principal. It then amortizes that same principal over the remaining months and compares the two payment phases.
- The rate stays fixed and is divided by 12 throughout the term.
- Payments in the first phase cover interest only, so principal does not decline.
- The full principal is then amortized in equal payments over the remaining months.
- Taxes, insurance, escrow, points, fees, and penalties are excluded.
Educational estimate, not a loan quote or financial advice. Confirm payment timing, rate changes, fees, maturity options, and every actual term with your lender.
Sources and references
Frequently asked questions
Why does the payment jump?
The full original principal must be repaid over the shorter time left after the interest-only period, so the later principal-and-interest payment is higher.
Does the balance fall during the interest-only period?
No. This estimate assumes every initial payment covers interest only, leaving the original principal unchanged until amortization begins.
Is this a lender quote?
No. Confirm rate changes, qualification rules, fees, payment timing, and actual terms with your lender.