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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
  1. Enter loan amount and interest rate.
  2. Review the interest-only payment.
  3. 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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