Interest-Only Calculator

Frequently Asked Questions

• What is an interest-only loan?
  An interest-only loan lets you pay just the interest for an initial period (typically 5–10 years). During that time the principal balance doesn't reduce — you pay it down (or refinance) after the IO period ends.
• Who should consider an interest-only loan?
  They suit borrowers with irregular income (business owners, commission earners) or investors planning to sell/refinance before the IO period ends. They're risky for general homebuyers because total interest paid is higher.
• What happens after the interest-only period?
  Payments jump significantly because the full principal must now be amortized over the remaining tenure. Our calculator shows both the IO phase payment and the higher post-IO payment so you can plan for the shift.
• Will I pay more interest overall than a regular EMI loan?
  Yes. Since the principal doesn't reduce during the IO period, interest accrues on the full balance longer. Use our EMI calculator to compare total interest for a standard amortizing loan.