# Interest Only Loan Calculator

> Calculate interest only payments on a loan in three modes: the monthly, biweekly, or weekly interest only payment; the total interest paid over an interest only period; or a side-by-side comparison of interest only vs amortizing payment. Works as an interest only loan calculator, interest only payment calculator, interest only mortgage calculator, interest only calculator, loan interest only calculator, interest only period calculator, interest only loan payment calculator, and reference for the interest only payment formula. Useful any time you need to calculate interest only payment amounts or see what a monthly interest only payment looks like before principal repayment starts.

**URL:** https://www.calculatoranswers.com/interest-only-loan-calculator
**Category:** Money

## Quick Answer

Calculate payments for loans with an initial interest-only period. Enter the loan amount, interest rate, loan term, and interest-only duration to see payment phases.

## Definition

An interest-only loan calculator is a debt management tool that computes the monthly payments on loans where the borrower is initially required to pay only the interest, leaving the principal balance unchanged. The calculator computes the initial interest-only payment using the interest rate and principal amount, and projects the subsequent fully amortizing payments that occur after the interest-only period ends. Borrowers use this tool to analyze cash flows and understand the impact of future payment shocks.

## How to Use

1. **Enter loan amount** — Type the total principal amount of the loan.
2. **Set interest rate** — Enter the annual interest rate as a percentage.
3. **Choose loan terms** — Specify the total loan term and the duration of the interest-only period.
4. **Review payments** — View the initial interest-only monthly payment and the subsequent fully amortized payment.

## Disclaimer

This calculator provides estimates for educational and planning purposes. Always consult a qualified professional for specific advice on financial, medical, legal, or other regulated decisions.

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