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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

Input Fields
$
Enter the loan amount
%
Enter the annual interest rate
If enabled, the result will update automatically when you change any value.

Interest Only Payment Formula

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.

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