The borrower, who obtained an interest-only loan, will only pay interest on the principal balance through his or her monthly payments; the principal balance will then be paid at the end of the loan term. If interested in a free user-friendly loan repayment tool, you may want to take a look at our new interest-only loan calculator (link located below) which calculates your loan amortization schedule and helps estimate your monthly payments.
Let’s take a look at an example of how it works!
Laura got a student loan of $80,000 with a fixed interest rate of 12% and a 1 year term. She then opened our online loan calculator and selected the “Interest-only” loan option. It took Laura merely a few seconds to fill out the following fields:
*She didn’t input the number of payments because this field was automatically calculated after she inputted the maturity date.
Finally, she selected the loan repayment frequency and pressed the “Calculate” button.
The next image displays the loan repayment schedule that Laura received. The process of getting this evaluation proved to be very simple and clear with the use of our interest-only loan repayment calculator. We hope that this tool will be useful for you as well! Enjoy!