Loans & consolidation
Interest-Only Period and Payment Reset Calculator
Calculate the temporary interest-only payment and the larger payment that follows.
How to use this calculator
- Gather balance; rate; interest-only months; remaining term. Use documents covering the same date or period.
- Replace the example values with your own figures. Change one assumption at a time to compare scenarios.
- Review temporary payment; reset payment; total interest. Open the breakdown and export a copy for discussion.
How the calculation works
Monthly interest-only payment is principal times annual rate divided by 12. Principal stays unchanged during relief, then amortizes over the entered post-relief months. Total cost includes both phases.
Worked example
These results use the editable example values shown in the calculator. They illustrate the method and do not predict an offer or outcome.
- Temporary interest-only payment
- $1,000.00
- Payment after relief
- $4,707.35
- Total interest across both phases
- $18,976.34
- Total repayment
- $118,976.34
Questions about the results
What does this tool include?
Calculate the temporary interest-only payment and the larger payment that follows. Monthly interest-only payment is principal times annual rate divided by 12. Principal stays unchanged during relief, then amortizes over the entered post-relief months. Total cost includes both phases.
What should I verify before relying on the result?
Interest is paid in full during relief; unpaid or capitalized interest is not assumed. The entered amortizing term begins after the relief period.
What this result does and does not tell you
Interest is paid in full during relief; unpaid or capitalized interest is not assumed. The entered amortizing term begins after the relief period.
Sources and reference material
Sources checked 2026-10-09. Verify rules and program terms for your actual transaction date.