Interest Only Payment Calculator
This Interest Only Payment Calculator helps you estimate your monthly payment that covers only the interest portion of a loan, without reducing the principal balance.
Monthly Interest Only Loan Payment Calculator
Interest Only Payment Formula
$$\text{Interest Only Payment} = \frac{\text{Loan Amount} \times \text{Interest Rate}}{12}$$
Where:
- $$Loan Amount$$ = Principal amount borrowed
- $$Interest Rate$$ = Annual interest rate (as decimal)
- $$Interest Only Payment$$ = Monthly interest payment amount
The Interest Only Payment Calculator is useful for borrowers who have loans structured with an initial interest-only period. It helps you understand the minimum monthly payment covering only the interest without touching the principal, useful for financial planning and loan comparisons.