Calculate the interest-only monthly payment on a balance.
An interest-only payment covers only the monthly interest and does not reduce the principal. It is the minimum required to keep a balance from growing. Interest-only payments can ease cash flow, but paying nothing on principal means the debt balance never shrinks.
Interest Only Payment
Interest payment = balance x monthly rate
Interest payment = balance x monthly rate An interest-only payment covers only the monthly interest and does not reduce the principal. It is the minimum required to keep a balance from growing.
Interest-only payments can ease cash flow, but paying nothing on principal means the debt balance never shrinks.
This calculator takes 2 inputs: Loan amount, Annual rate. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.