Interest Only Mortgage Calculator
Interest Only Payment Calculator
Interest only mortgage calculator
Compare interest only and principal & interest repayments side by side, and see the full cost impact when your interest only period ends and repayments jump.
How interest only loans work: During the interest only period you pay only the interest — your loan balance does not reduce. When this period ends, your remaining balance is repaid over a shorter term, which means significantly higher repayments. Interest only loans are commonly used by investors to maximise cash flow, but they cost more in total interest over the life of the loan.
Loan details
Leave the same as above if rate does not change
Interest only period
Investor note: Interest only repayments on investment loans are generally tax-deductible in Australia. Owner-occupied interest only loans are less common and may attract a higher interest rate. Always confirm tax implications with your accountant.
Repayments & loan balance over time
IO repayment
P&I repayment (after IO)
Equivalent P&I from day 1
Loan balance
Year-by-year breakdown
| Year | Phase | Repayment | Interest paid | Principal paid | Loan balance | Cumul. interest |
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