Interest Only Mortgage Calculator
Mortgage Details
Welcome to the simplest mortgage calculator you’ll ever use. With just two pieces of information—the mortgage amount and the interest rate—you can easily calculate your monthly payments for an interest-only mortgage. This type of mortgage is straightforward because, unlike a repayment mortgage, you’re only paying the interest on the loan each month, not the principal.
How It Works
The formula to calculate the monthly payment for an interest-only mortgage is:
Where:
- Mortgage Amount is the total loan amount.
- Interest Rate is the annual interest rate as a decimal (e.g., for a 5% interest rate, use 0.05).
For example, if you have a mortgage amount of £200,000 with an interest rate of 5%, the calculation would be:
£200,000 x 5% = £10,000 (this is how much interest you would pay each year)
£10,000
Use this calculator to help you quickly determine your monthly interest payments, making it easier to plan your finances and manage your mortgage effectively.
Important Information...
This information is generated by a computer and is based on certain assumptions, with results rounded for simplicity. This calculator is intended to provide a general estimate of costs.
It’s essential to obtain a specific quote from your lender and verify the figures independently before making any decisions. We cannot be held responsible for any inaccuracies.
