Interest-Only Amortization Schedule
See a month-by-month breakdown of your interest-only loan payments, including the transition from IO to full amortization.
✓ Month-by-month payment detail
✓ IO period vs. amortizing period
✓ Running balance shown
Interest-only note calculator
Calculate IO payments and balloon balance at maturity.
How an IO Amortization Schedule Works
An interest-only loan amortization schedule has two distinct phases:
Phase 1: Interest-Only Period
| Month | Payment | Interest | Principal | Balance |
|---|---|---|---|---|
| 1 | $1,750 | $1,750 | $0 | $300,000 |
| 2 | $1,750 | $1,750 | $0 | $300,000 |
| ... | $1,750 | $1,750 | $0 | $300,000 |
| 60 | $1,750 | $1,750 | $0 | $300,000 |
Example: $300,000 at 7% with 5-year IO period
Phase 2: Amortizing Period
After the IO period, the remaining balance is amortized over the remaining term (e.g., 25 years on a 30-year mortgage). Payments jump because they now include principal. In this example, the payment would increase from $1,750 to approximately $2,120/month.
Key Insight
The longer the IO period, the higher the amortizing payments afterward—because you have less time to repay the same principal. A 10-year IO on a 30-year loan means you're amortizing over just 20 years instead of 30.