Interest-Only Loan Calculator

Loan Amount: Annual Interest Rate (%): Loan Term (in years):

Interest Only Loan Calculator

To calculate an interest-only loan, you can use a loan calculator that allows you to input the loan amount, interest rate, and loan term. Here are the general steps to use an interest-only loan calculator:

1. Input the loan amount: Enter the total amount of the loan you are considering. For example, let's assume you want to borrow $100,000.

2. Input the interest rate: Enter the annual interest rate associated with the loan. For instance, if the interest rate is 5%, you would enter 5.

3. Input the loan term: Enter the loan term in years. For example, if you plan to repay the loan over 10 years, enter 10.

4. Choose the interest-only option: Some loan calculators have an option to select an interest-only payment period. If available, select the interest-only option.

5. Calculate the monthly payment: Click the calculate or compute button to obtain the monthly payment amount. The calculator will provide you with the interest-only payment amount for the specified term.

It's important to note that an interest-only loan requires you to make only interest payments during the specified period, and the principal balance remains unchanged. Once the interest-only period ends, the loan typically transitions into a different payment structure, such as principal and interest payments or a balloon payment.

Interest-only loans can have various terms and conditions, so it's advisable to consult with a financial institution or lender to obtain accurate and specific details about the loan product you are considering.