Interest Only Calculator

This Interest Only Calculator enables users to calculate regular interest payments, total interest over the term, total payments, total amount due at the end of the term, and the effective annual rate for a loan based on input values such as principal amount, interest rate, loan term, and payment frequency.

Use Our Interest Only Calculator

Guide to Using the Interest Only Calculator

This guide will walk you through using the Interest Only Calculator to accurately determine your regular interest payments, total interest over the term, and other important financial metrics associated with your loan.

Step 1: Entering the Principal Amount

Begin by entering the amount of money you plan to borrow in the Principal Amount ($) field. This field accepts numbers only, with a minimum value of $1,000 and a maximum of $10,000,000. Use a step of $1,000 to adjust your input if necessary.

Step 2: Inputting the Annual Interest Rate

Next, input your loan’s Annual Interest Rate (%). Ensure the rate is within the range of 0.01% to 30.00%, and adjust your input in increments of 0.01% to fit your specific rate.

Step 3: Specifying the Loan Term

Determine the length of your loan in years and enter this number into the Loan Term (Years) field. This number should be between 1 and 30 years, with allowable entries increasing by increments of 1 year.

Step 4: Selecting the Payment Frequency

The Payment Frequency field allows you to decide how often you will make interest payments. Choose from the following options:

  • Monthly
  • Quarterly
  • Semi-annually
  • Annually

Calculating the Results

Once all fields are accurately filled out, the calculator will provide you with several key metrics:

  • Regular Interest Payment: This represents the periodic interest payments you’ll make, formatted in USD currency with two decimal places.
  • Total Interest Over Term: This shows the cumulative interest you’ll pay over the entire term of the loan, also in USD currency with two decimal places.
  • Total Number of Payments: This indicates the total number of interest payments you will make over the loan term, displayed as a whole number.
  • Total Amount Due at End of Term: Incorporating the principal and total interest, this shows how much is owed in total at the end of the term, formatted in USD currency with two decimal places.
  • Effective Annual Rate: This percentage reflects the rate of borrowing or investment after accounting for compounding, displayed with two decimal places.