Interest-Only Loan Calculator
Interest-only loan calculator: the monthly payment while you pay only interest, compared with a fully amortizing payment.
M = L · i12
How to use this calculator
- Choose the quantity you want under “Solve for”.
- Type the known values and pick their units: any combination works.
- The result updates as you type. Open “Show the steps” to see the substitution.
Interest-only payment = loan × rate ÷ 12. The balance does not fall, so payments jump when the interest-only period ends.
Formula
M = L · i12
| Symbol | Quantity | Units |
|---|---|---|
| L | Loan amount | $, €, £ |
| i | Annual interest rate | %, × |
| M | Monthly interest payment | $, €, £ |
Worked example
Given: L = 300,000.00 $ · i = 6 %
M = L i12
Result: M = 1,500.00 $
Monthly interest payment for different values of Loan amount
| L · Loan amount | M · Monthly interest payment |
|---|---|
| 150,000.00 $ | 750.00 $ |
| 225,000.00 $ | 1,125.00 $ |
| 270,000.00 $ | 1,350.00 $ |
| 300,000.00 $ | 1,500.00 $ |
| 330,000.00 $ | 1,650.00 $ |
| 375,000.00 $ | 1,875.00 $ |
| 450,000.00 $ | 2,250.00 $ |
| 600,000.00 $ | 3,000.00 $ |
Other values as in the worked example.
Frequently asked questions
$300,000 at 6 %?
$1,500 a month, versus about $1,799 if amortized over 30 years.
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