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Interest-Only Payment Calculator

Calculate the periodic interest-only payment on a principal balance at a stated annual rate.

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Calculator guide

How to use the Interest-Only Payment Calculator

Calculate the periodic interest-only payment on a principal balance at a stated annual rate. Enter the requested values and select Calculate. The result and supporting values are produced locally in your browser.

Formula

Monthly Interest-Only Payment = Principal × APR ÷ 12

Worked example

$250,000 at 6.5% annual interest has a monthly interest-only payment of about $1,354.17.

What to keep in mind

  • An interest-only payment does not reduce principal unless additional principal is paid.
  • Actual lenders may use daily accrual or other conventions.

Methodology

This calculator uses deterministic arithmetic and performs the calculation locally in your browser. Verify assumptions, units, and source values for your specific use case.

Review standard: Level A · Standard formula. How calculator reviews work.

Frequently asked questions

What does this calculator calculate?

Calculate the periodic interest-only payment on a principal balance at a stated annual rate.

How is the result calculated?

Monthly Interest-Only Payment = Principal × APR ÷ 12.

Can I use the result for an important decision?

Use the result as a calculation aid and verify the inputs, assumptions, and applicable professional or regulatory requirements before relying on it for an important decision.

Does CalculateMeasure store the values I enter?

The calculator performs its arithmetic in your browser. The calculator itself does not need to send your entered values to a server to produce the result.