This calculator will compute an interest-only loan's accumulated interest at various durations throughout the year. These amounts reflect the amount which would need to be paid in order to maintain a constant principal balance.
Check Out Our Related IO Loan Calcualtors
If your interest-only loan is a mortgage, we also offer an interest-only mortgage calculator, an IO calculator with extra payments and an IO ARM calculator.
We also have calculators which you can use to amoritize loans over any desired schedule.
For your convenience we list current mortgage rates to help you perform your calculations and find a local lender.
The following table shows current 30-year mortgage rates. You can use the menus to select other loan durations, alter the loan amount, change your down payment, or change your location. More features are available in the advanced drop down.
The above calculator also has a second tab which shows the current interest rates on savings accounts. This further shows how expensive debt is because most forms of consumer debt charge a far higher rate of interest than banks pay savers AND savers get taxed on interest income they earn at their ordinary tax rates. The table below shows the full cost of $10,000 of debt at various rates of interest. While different consumer debt types typically have different amounts, we kept the amount column constant to show the absolute difference in cost per Dollar earned or borrowed. We also presumed interest-only payments on the debt & a 25% tax rate on income.
| Account Type | Amount | Rate | Annual Interest | After Tax Income | Required Income to Cover Interest Expense |
|---|---|---|---|---|---|
| Big Bank Savings | $10,000 | 0.02% | $2 | $1.50 | - |
| High-yield Savings | $10,000 | 4.00% | $400 | $300.00 | - |
| Certificate of Deposit | $10,000 | 5.00% | $500 | $375.00 | - |
| New Car, Good Credit | $10,000 | 6.49% | $649 | - | $865.33 |
| Used Car, Bad Credit | $10,000 | 10.90% | $1,090 | - | $1,453.33 |
| Credit Card | $10,000 | 21.52% | $2,152 | - | $2,869.33 |
| Personal Loan, Good Credit | $10,000 | 14.5% | $1,450 | - | $1,933.33 |
| Personal Loan, Bad Credit | $10,000 | 30.0% | $3,000 | - | $4,000 |
| Payday Loan | $10,000 | 400% | $40,000 | - | $53,333.33 |
Explore conventional mortgages, FHA loans, USDA loans, and VA loans to find out which option is right for you.
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