Mortgage Calculators

Fixed Rate Mortgage vs. Interest Only Mortgage

Interest-only payments are lower but build no equity. Compare them against a fixed-rate mortgage that pays down principal from day one.

Inputs

Loan amount

Interest rate

Loan term (years)

Interest-only period (years)

Estimates only. Change any value to recalculate instantly.

Lower payment with interest-only $316.40 but you build $53,284 less equity over 10 years

Fixed payment $2,212.24

Interest-only payment $1,895.83

Monthly difference $316.40

Equity given up $53,284 over 10 yrs

Loan balance Fixed (pays down)Interest-only (flat)

The interest-only loan frees up $316.40 a month, but you forgo $53,284 of equity the fixed loan would have built. That equity is real wealth — the lower payment has a long-term cost.

Balance by year: fixed vs interest-onlyView table

Year	Fixed balance	Interest-only balance
1	$346,088	$350,000
2	$341,914	$350,000
3	$337,460	$350,000
4	$332,709	$350,000
5	$327,638	$350,000
6	$322,229	$350,000
7	$316,457	$350,000
8	$310,298	$350,000
9	$303,727	$350,000
10	$296,716	$350,000
11	$289,236	$341,176
12	$281,254	$331,761
13	$272,738	$321,716
14	$263,652	$310,998
15	$253,957	$299,562
16	$243,613	$287,360
17	$232,576	$274,341
18	$220,800	$260,450
19	$208,235	$245,629
20	$194,828	$229,815
21	$180,524	$212,942
22	$165,262	$194,940
23	$148,978	$175,731
24	$131,603	$155,236
25	$113,065	$133,368
26	$93,285	$110,036
27	$72,180	$85,142
28	$49,662	$58,580
29	$25,635	$30,239
30	$0	$0

How this calculator works

This calculator runs entirely in your browser — nothing you enter is sent anywhere, and there is no sign-up. Change any input and the result, breakdown, and schedule update instantly.

Rate and cost fields are pre-filled with current benchmarks (Federal Reserve / Freddie Mac via FRED (St. Louis Fed)), so your first result is already realistic — replace them with your own quote to see your numbers. To weigh one option against another, use the loan comparison calculator.

30-year fixed mortgage rate, 2019–2026

Source: Freddie Mac PMMS via FRED. Annual averages; latest weekly reading shown.

Common questions

Is this calculator free, and do I need to sign up?

Yes and no — it is completely free and asks for no account or personal details. Every calculation happens in your browser, so nothing you type is stored or sent to us.

How accurate are the results?

The math is exact for the inputs you give it, but the defaults are national benchmarks — your real rate, fees, taxes, and insurance will differ. Treat the result as a close estimate to refine with a real quote.