📊 Interest Only vs P&I Calculator
Compare the total cost of an interest-only loan versus a principal & interest loan.
📝 Loan Details
Must be less than total term.
📊 Your Results
📊
Enter your loan details and click Compare IO vs P&I.
Interest Only vs Principal & Interest
Interest Only
—
during IO period
—
total interest
✅ P&I from Start
—
repayment
—
total interest
Loan Amount—
IO Period Repayment—
P&I Period Repayment—
P&I from Start Repayment—
Extra Interest Cost—
Payment Shock—
Balance After IO—
Phase Breakdown
📅 Phase 1 — Interest Only
Duration—
Repayment—
Total Paid—
Principal Reduced—
📅 Phase 2 — P&I
Duration—
Repayment—
Total Paid—
Year-by-Year Comparison
| Year | Type | IO Repayment | P&I Repayment | IO Balance | P&I Balance |
|---|
💡 Interest Only vs P&I — What You Need to Know
⚠️
IO Costs More Overall
You are not reducing the principal during the interest-only period.
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Payment Shock
Repayments usually rise after the IO period ends.
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Cash Flow Flexibility
IO may help short-term cash flow but increases long-term cost.
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Switch Early
Switching to P&I early may reduce total interest.
⚠️ Disclaimer: This calculator is for illustrative purposes only and does not constitute financial advice.
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