Interest-Only Loan Calculator
Analyze interest-only loans with payment shock and equity projections.
Loan Terms
Payment Comparison
IO Period (Years 1-10)
$2,500
Interest only
After IO (Years 11-30)
$3,222
P&I over 20 years
Payment Shock
Increase when IO period ends
+$722
+29%
vs. Full Amortization
30-year fully amortizing
$2,797/mo
Save $297/mo during IO
Payment Timeline
| Year | Period | Monthly Payment | Est. Balance |
|---|---|---|---|
| Year 1 | Interest-Only | $2,500 | $400,000 |
| Year 6 | Interest-Only | $2,500 | $400,000 |
| Year 11 | Amortizing | $3,222 | $380,000 |
| Year 16 | Amortizing | $3,222 | $280,000 |
| Year 21 | Amortizing | $3,222 | $180,000 |
| Year 26 | Amortizing | $3,222 | $80,000 |
IO Period Savings
Monthly Savings vs. Full Amort
$297
Total Savings Over 10 Years
$35,623
Interest Cost
IO Period Interest$300,000
Amortizing Interest$373,369
Total Interest (IO Loan)$673,369
Full Amort Interest$606,869
Extra Interest Cost+$66,501
Equity Position at Year 10
Est. Property Value$671,958
Loan Balance$400,000
Equity (Appreciation)$171,958
LTV at End of IO59.5%
IO Loan Considerations:
- • No equity built during IO period
- • Higher payments after IO ends
- • Good for short-term holds
- • Invest savings for higher returns