Interest-Only Mortgage Calculator
Estimate your monthly interest-only payments.
Enter a mortgage amount, interest rate and term to estimate your monthly interest payments, total interest and the amount you will still owe when the mortgage ends.
With an interest-only mortgage, your monthly payments cover interest rather than reducing the amount borrowed. You need a separate, credible plan to repay the capital at the end of the term.
Your figures
Mortgage details
Adjust the figures below to explore how the estimated monthly interest payment changes.
Estimated interest-only payment
Monthly interest payment
£1,125
per month
Total interest over term
£337,500
Capital still to repay
£300,000
Total interest plus capital repayment
£637,500
Includes repaying the outstanding mortgage balance at the end of the term.
Important: the capital does not reduce.
At the end of the mortgage term you would still owe £300,000. You will need an acceptable repayment strategy to repay this amount.
Speak to an adviserUnderstanding interest-only
Lower monthly payments. Capital still outstanding.
Unlike a repayment mortgage, interest-only payments do not pay down the original loan. This can reduce the monthly cost, but it does not remove the obligation to repay the amount borrowed.
01
Monthly interest
Your monthly payment covers the interest charged on the outstanding mortgage balance.
02
Original loan remains
If you make no capital repayments, the full original mortgage remains outstanding throughout the term.
03
End-of-term plan
You need a credible repayment strategy, acceptable to your lender, to repay the capital when it is due.
Compare your options
Interest-only vs repayment.
The same loan, rate and term can produce different monthly payments. This comparison illustrates the trade-off between monthly cost and paying down the capital.
Interest-only
£1,125
estimated per month
Balance at end of term
£300,000
Capital & interest repayment
£1,667
estimated per month
Balance at end of term
£0
Difference in monthly payments: £542. Both calculations assume a constant rate and exclude fees. The repayment example assumes all scheduled payments are made in full.
Important assumptions
An illustration, not a mortgage quote.
01
The calculation assumes that monthly payments cover interest only and the mortgage capital remains unchanged until the end of the term.
02
The annual interest rate is assumed to remain unchanged for the full mortgage term.
03
The calculation assumes interest is charged monthly at one-twelfth of the annual rate; actual lender calculations may differ.
04
Product fees, arrangement fees, valuation costs, legal costs and other charges are not included.
05
The full outstanding capital must be repaid at the end of the mortgage term. Lenders normally require an acceptable repayment strategy.
06
Not all borrowers or mortgage products are eligible for interest-only borrowing. This calculator does not assess eligibility or affordability.
07
Actual payments may change if the interest rate, mortgage balance, term or mortgage product changes.
Continue exploring
Other mortgage calculators.
Important information
This calculator is for general information and illustration only. It does not constitute personal financial advice, a mortgage recommendation, an affordability assessment or an offer of lending. Mortgage availability and suitability depend on individual circumstances and lender criteria. Interest-only mortgages require repayment of the outstanding capital at the end of the term.
Your home or property may be repossessed if you do not keep up repayments on your mortgage or other loan secured upon it.
Speak with Intra
Looking at an interest-only mortgage?
Speak with an adviser about mortgage eligibility, lender criteria and how you plan to repay the capital at the end of the term.