8 Thoughts on How do I calculate an interest only mortgage payment? WHat is the formula?
  1. Reply
    Just me(a nice guy)
    February 1, 2014 at 3:56 pm

    there are some website that you can just plug in the #’s and it will figure it for you, search mortage calculator

  2. Reply
    February 1, 2014 at 4:13 pm

    there are many different ways to calculate the payment, but if you have a financial calculator you would enter the interest rate per payment period, enter your mortgage balance both in the present value of the mortgage and the future value of the mortgage, and then enter the number of payments the mortgage is being calculated over (number of years x number of payments per year) after this is all done you would compute the for the payment and it would give you the interest only payment, as you told the calculator that you did not reduce the value of the mortgage principal.

    There are a great number of interest compounding methods that will make a difference in the actual payment.

    You can also seek out mortgage calculators on line at most of the financial institutions, and plug in your own numbers and find out the payments.

    Good Luck

  3. Reply
    February 1, 2014 at 4:17 pm

    Check out this website, that’s the one I’m using.
    You can compare, and there is also a Calculator section.


    Calculators page:

  4. Reply
    February 1, 2014 at 4:44 pm

    Best way is to ask the institution you are dealing with how they calculate. it then you will have a more accurate answer….

  5. Reply
    February 1, 2014 at 5:38 pm

    An interest only payment is quite simple. Divide the APR by 12 to get the periodic monthly rate. Multiply the periodic monthly rate by the principal to get the interest only payment.

    Example: A $ 100,000.00 mortgage at 6% APR. 6% / 12 = .5% periodic monthly rate. Express the periodic monthly rate as a decimal (.005) and multiply: $ 100,000 x .005 = $ 500.00. Your monthly payment is $ 500.00.

    FYI, the payment on a regular 30 year mortgage loan would be $ 599.55

  6. Reply
    February 1, 2014 at 5:44 pm

    Interest Only Payment Calculation

    ((Loan Amount)*(Interest Rate)) / 12 =payment

    Get you calculator

    Loan Amount $ 100,000
    Interest Rate 6.5% (expressed as a decimal .065)

    Input Loan Amount $ 100,000
    Multiply by Rate .065
    Divide by 12
    Payment = $ 541.67

    ~Danke Schoen

    Feel free to contact me with any other questions

  7. Reply
    February 1, 2014 at 5:51 pm

    hello, here’s an easy
    link with info and offers on mortgages:
    also perhaps here:
    if you get any luck please don’t forget about me lol, hope it helped you, thanks!

  8. Reply
    February 1, 2014 at 6:19 pm

    2nd worse type of loan, do more research on it.

    Read this article


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