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Finance Calculators

Interest Only Loan Calculator

Verified formula Updated Jun 2026 Private — runs on your device

Enter details
₹
%
Verified formula Private

Monthly payment (interest only)

₹15,000

Annual interest
₹1,80,000

For general information only — not financial, tax, legal or medical advice. Verify before you rely on it.

How to use the Interest Only Loan Calculator

The Interest Only Loan Calculator works out your monthly payment (interest only), along with 1 related figure in an instant. Enter loan amount and annual interest rate and the result updates as you type — it is free, needs no sign-up, and runs entirely in your browser so your figures stay private.

  1. Enter the loan amount.
  2. Enter the annual interest rate.
  3. Read off your monthly payment (interest only), together with annual interest — the calculator updates automatically, with no button to press.

Formula

The Interest Only Loan Calculator uses the formula:

Monthly payment (interest only) = Loan amount × Annual interest rate ÷ 100 ÷ 12

Worked example

For example, with loan amount of ₹2,000,000 and annual interest rate of 9%, the monthly payment (interest only) is ₹15,000.

Inputs used
Loan amount ₹2,000,000
Annual interest rate 9%
Results
Monthly payment (interest only) ₹15,000
Annual interest ₹1,80,000

Results are estimates for educational use, not professional advice.

Key terms explained

Interest rate
The percentage charged on a loan or paid on savings, usually quoted per year (per annum).

Frequently asked questions

It is a loan where, for a period, you pay only the interest and the principal does not reduce. A 20,00,000 loan at 9% costs 15,000 a month in interest.

Multiply the principal by the annual rate and divide by 12 for the monthly payment. The principal stays unchanged until you start repaying it.

Because the balance does not fall, you still owe the full amount at the end of the interest-only period and must repay or refinance it then.

They are common for some mortgages, business and bridging finance, where lower early payments or matching cash flow to income matters.

Enter the loan amount. Enter the annual interest rate. Read off your monthly payment (interest only), together with annual interest — the calculator updates automatically, with no button to press.

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