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Interest Only vs P&I
Lower now, how much more over the life
About this calculator
Interest-only keeps early repayments lower and cash flow easier, but the balance doesn't reduce. When the IO period ends you must repay the same principal over a shorter term, so repayments jump and total interest is higher. This tool lays both paths side by side.
Frequently asked
When does interest-only make sense?
Commonly for investment property (where interest may be tax-deductible) or short-term cash-flow planning. For your own home, weigh the repayment jump carefully.