Interest Only Loan Payment Calculator

Loan Amount ($) Interest Rate (%) Loan Term (years) Monthly Payment ($)

function calculatePayment(){ const loanAmount = parseFloat(document.getElementById(“loanAmount”).value); const interestRate = parseFloat(document.getElementById(“interestRate”).value) / 100; const loanTerm = parseFloat(document.getElementById(“loanTerm”).value); if(isNaN(loanAmount) || isNaN(interestRate) || isNaN(loanTerm) || loanAmount <= 0 || interestRate <= 0 || loanTerm el.value = “”); } function formatCurrency(n) { return “$” + n.toFixed(2); }

This Interest Only Loan Payment Calculator allows you to calculate your monthly payment based on the loan amount, interest rate, and loan term. This tool helps you understand how much you will pay each month for an interest-only loan.

Formula

Monthly Payment = Loan Amount × Monthly Interest Rate

Example Calculation

$500,000 loan, 5% interest rate, 30-year term → Monthly payment = $500,000 × 0.004167 = $2,083.33

Why It Matters

Understanding your monthly payment helps you plan your budget and make informed decisions about interest-only loans.

Smart Strategy

Interest-only loans can be beneficial for short-term financing, but it’s important to plan for the full principal repayment at the end of the term.

FAQs

What is an interest-only loan? It is a loan where you pay only the interest for a set period, with no principal repayment during that time.

How long do I pay interest only? Typically, interest-only loans last for 5 to 10 years before transitioning to principal and interest payments.

Can I pay principal during the interest-only period? Yes, some loans allow you to make extra payments towards the principal if desired.

Payment Calculator for Interest Only Loan

Interest Only Loan Payment Calculator