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Interest-Only Payment
Calculate interest-only payments and compare to amortizing payments.
Parcel Platform
Mar 4, 2026
Interest-Only Payment
Loan $300,000 • 7.00%
Interest-Only Payment
$1,750/mo
Amortizing Payment (P&I)
$1,996/mo
Difference
$246/mo
Interest-only payments reduce monthly payment but don't pay down principal. Make sure you understand the reset/refi plan.
How this calculator works
Interest-only payments are common in hard money and short-term financing. This calculator estimates the monthly interest-only payment and compares it to a standard amortizing mortgage payment.
What it includes
- Interest-only payment
- Amortizing payment comparison
- Quick budgeting context
How to use it
- Enter loan amount and interest rate.
- Review the interest-only payment.
- Optionally compare to a standard amortizing payment to see the difference.
FAQ
Do interest-only payments build equity?
No. You’re paying interest only. Equity changes only if the property value changes or you pay principal separately.
When is interest-only financing used?
Often for flips, construction, or short-term bridge loans where the goal is flexibility and speed rather than long-term amortization.
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