#interest only loan calculator
Interest Only Payment Calculator
How to use this calculator.
This calculator will solve for one of two possible unknowns: Amount of Loan , or the Periodic Payment . (Interest only loans have a theoretically infinite term though the lender and borrower will typically agree when the principal balance is due.)
Enter a ‘0’ (zero) for one unknown value.
The term (duration) of the loan is a function of the Total Scheduled Periods and the Payment Frequency . If the loan is calling for monthly payments and the term is four years, then enter 48 for the Total Scheduled Periods . If the payments are made quarterly and the term is ten years, then enter 40 for the Total Scheduled Periods .
Normally you would set the Payment Method to Arrears for a loan. This means that the monies are lent on one day and the first payment isn’t due until one period after the funds are received.
If the first payment is due on the day the funds are available, then set Payment Method to Advance . This is typical for leases.