Interest-Only Loan Calculator

Set this equal to the total term for a loan that never repays principal, leaving a balloon.
Payment during the interest-only period
1,500.00
Interest-Only Loan Calculator
Payment once it recasts
1,932.90
Balloon due at the end
0.00
Total paid
669,871.26
Total interest
369,871.26
Payment if repaid from the start
1,798.65
Total paid if repaid from the start
647,514.57
Interest if repaid from the start
347,514.57
Extra interest the interest-only period costs
22,356.69
Payment increase when it recasts
432.90
Worked out from Consumer Financial Protection Bureau, What is an interest-only loan? and 1 other source.
The payment rises from 1500 to 1932.9 after 60 month(s) — an increase of 432.9. Nothing paid before then reduces the balance.
Recasting over the remaining term is the usual market convention rather than a legal requirement; a particular lender’s contract may differ.

How this is worked out

4 steps
  1. Monthly rate = 6% ÷ 12 = 0.5%
  2. Interest-only payment = 300000 × 0.005 = 1500
  3. After 60 month(s) the full 300000 is repaid over 300 month(s): 1932.9 a month
  4. Total interest 369871.26 against 347514.57 on an ordinary repayment loan

Results are general information, not financial, tax, legal, medical or engineering advice.